Time to buy? The Bitcoin market is still in extreme fear
With the cryptocurrency market cap dropping sharply in the last 24 hours, it’s time to consider selling your holdings and taking your profits. If you’ve kept a low profile in recent months, you might’ve avoided the damage. If you’ve been holding out, you may be wondering whether it’s time to buy.
Fear of missing out (FOMO) is the reason most people buy Bitcoin. FOMO is the fear of missing out, and is considered the most powerful of all emotions.
The cryptocurrency market is still in extreme fear. As it recovers from an extremely volatile 2017, many investors are buying Bitcoin at the top of the market, while others are selling it as soon as it hits a new low. While prices are rising, so is the fear, as the market is starting to realize that Bitcoin is no longer considered a new asset class, but rather a new form of money.
According to the Fear and Greed index, the Bitcoin market is in a condition of “fear,” indicating a potential purchasing opportunity.
Bitcoin just surpassed $39,000, resulting in the liquidation of $1.1 billion in short positions.
Despite the recent rise in the market value of Bitcoin (BTC), the Fear and Greed Bitcoin index indicates that the Bitcoin market remains fearful. Most investors are still concerned, which leads to a “buying opportunity,” according to reports.
Bitcoin F&G index reads “fear” at 26
The fear and greed index curates and analyzes several sentiments in the Bitcoin market and rates them between 0 to 100, wherein reading of zero means the market is in extreme fear while the latter means extreme greed. At the time of writing, the F&G index reads 26, which means many investors are still worried about Bitcoin, regardless of the quick push in price some hours ago.
The market has been in a state of dread for the last week and month, as BTC has struggled in the bear market. BTC has dropped by almost 40% from its all-time high in April, owing to the bear market and other factors like as China’s ban on miners, which has had a significant effect on the network’s hashrate.
The Bitcoin market is anticipating a rally to $38,000 BTC.
Despite this, many market participants are beginning to become nervous as Bitcoin momentarily reached $39,000, a price level last seen six weeks ago. According to CoinMarketCap, Bitcoin was trading at $38,399 at the time of writing, with a total market value of nearly $720 billion.