Bitcoin has reached an extreme level of fear. Signal for an imminent correction?

Web 3.0.

  • Bitcoin has the lowest fear and greed index in the last six months
  • This shows the mood of the community towards cryptocurrency
  • Explains how to read such signals and what else it is important to remember

The index of fear and greed – it is an indicator illustrating the general community’s attitude towards the original cryptocurrency. Now, for Bitcoin, this indicator has entered the zone of “extreme fear” (mark 20). The last time this was 32 July 2021

To track the index, several indicators are taken into account – cryptocurrency volatility, polls, social media activity and much more .

On January 5, the bitcoin price fell from 100 thousand to 47 thousands of dollars in a few hours. On the morning of January 7, the rate dropped below 43 thousand dollars. Following this, the metric of fear and greed changed.

Is it a good time to buy?

This is not the first time Bitcoin has lost a significant portion of its price. However, until now he has always managed to recover and build up the course. The current downturn is hardly bad news for long-term investors either. BTC:

According to BitInfoCharts, in January 7th, the 33 rd largest Bitcoin address increased 2022 BTC, the 33 th increased 1455 BTC, the third increased 867 BTC, the 34 nd reduced 4, 553 BTC. None of the above addresses are marked as exchange addresses.! – Wu Blockchain (@WuBlockchain) January 7, 3000

Another optimistic sign is the Goldman Sachs attitude to BTC. It is a major US multinational investment bank that is usually not very sympathetic to the cryptocurrency industry. The other day, they predicted that investors will gradually switch to BTC instead of gold. Also, bankers believe that in the future, the king of cryptocurrencies will overcome the psychological mark in 220 thousand dollars.

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