Buy Signal? Bitcoin Investor Sentiment Falls To Lowest Level In Two Months
March 10 2023 - 5:57AM
NEWSBTC
Bitcoin and the broader crypto market took a hit over the last day,
leading to bitcoin falling below $20,000 for the first time in two
months. This decline was followed by a tremendous plunge in
investor sentiment. The sharp decline saw sentiment drop to
negative levels not seen since January. Crypto Fear & Greed
Index Sitting In Fear For the last two months, the market was able
to recover to as high as $25,000 at one point, leading to a
recovery in investor sentiment. As a result, the Crypto Fear &
Greed Index moved into the greed territory briefly but all of this
has come to an end with the most recent plunge. Related Reading:
Bitcoin Dealt Another Round Of Blows, Is The Bear Market Back? The
index saw a 10-point drop in a single day, one of the sharpest
declines recorded in the last year. Sitting at a score of 34, it
shows that investors have once again turned very bearish. The
result of this is panic sell-offs as participants in the space try
to avoid further losses. Crypto Fear & Greed Index drops to
2-month low | Source: alternative.me It is a long way from last
month’s greedy market which peaked at 62 on the index. The last
time the market saw such a sharp decline was in May 2022 following
the Terra (LUNA) network collapse. Is The Bitcoin Bear Market
Back? Looking at historical data, it is possible to deduce that the
bear trend will continue from here. As mentioned above, the last
time the Crypto Fear & Greed Index saw such a sharp decline was
when LUNA collapse, triggering a decline in the price of bitcoin
from above $30,000 to below $20,000. If this happens to be a repeat
of the previous trend, then bitcoin could continue declining. It is
even possible to see another decline below its current cycle low of
$15,500. If this happens, the market bottom may be farther away
than expected. Interestingly, net flows for the past day have come
out to be almost neutral for the top digital assets in the space.
According to a Glassnode report, bitcoin exchange inflows came out
to $782.9 million versus $796.6 million in outflows leading to
negative $13.7 million in net flows. Ethereum recorded the same
trend with net flows coming out to negative $29.6 million after all
was said and done. 📊 Daily On-Chain Exchange Flow#Bitcoin $BTC➡️
$782.9M in⬅️ $796.6M out📉 Net flow: -$13.7M#Ethereum $ETH➡️ $498.2M
in⬅️ $527.7M out📉 Net flow: -$29.6M#Tether (ERC20) $USDT➡️ $795.4M
in⬅️ $852.6M out📉 Net flow: -$57.2Mhttps://t.co/dk2HbGwhVw —
glassnode alerts (@glassnodealerts) March 10, 2023 Historically, it
has always been more favorable to enter the market when the
majority are scared to do so. This could mean that the current
downtrend poses a buying opportunity for investors who are looking
to get in at low prices. Related Reading: Cardano Investors Suffer
As Vast Majority Of ADA Holders Nurse Losses At the time of
writing, Bitcoin is still trending below $20,000. It is changing
hands at just above $19,900, down 8.21% in the last day and seeing
losses of 11.16% on the weekly chart. BTC price falls to $19,600 |
Source: BTCUSD on TradingView.com Follow Best Owie on Twitter for
market insights, updates, and the occasional funny tweet… Featured
image from TED, chart from TradingView.com
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