Tuesday, January 18, 2022

Bitcoin sentiment in ‘wild’ divergence from reality as $53K BTC triggers ‘extreme fear’


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Bitcoin (BTC) has stabilized at round $55,000 after dropping by $6,000 in a single day — however crypto market sentiment continues to be in shock.

According to the Crypto Concern & Greed Index as of Nov. 27, feelings are actually on the most fearful since late September.

Crypto sentiment dives into “excessive concern”

Concern & Greed, which takes a basket of things to compute a standardized sentiment rating for crypto markets from 1-100, at the moment sits at 21.

Friday took its toll on the metric, with the rating greater than halving in 24 hours from its earlier place of 47.

These two readings correspond to sentiment going from “impartial” to “excessive concern” — lacking out on the “concern” zone altogether.

Crypto Concern & Greed Index. Supply: Various.me

Whereas an expected response, the upheaval obvious the emotional state of market contributors is turning into a supply of amusement for some acquainted names.

Investor and entrepreneur Alistair Milne famous that “excessive concern” is hardly an acceptable response to BTC/USD buying and selling at $54,000. Certainly, the final time that the Bitcoin spot value was at these ranges was in mid-October, Concern & Greed measured 78, in any other case often known as an “excessive greed” territory.

“This a lot concern and we’re at $54k. Wild,” he summarized

On Sept. 30, when the Index final hit 21/100, BTC/USD traded at round $43,800 on Bitstamp.

BTC/USD 1-day candle chart (Bitstamp). Supply: TradingView

Funding charges see in a single day reset

As Cointelegraph reported, the newest and deepest part of the BTC value correction got here as dealer habits on exchanges stayed curiously optimistic.

Funding charges, being optimistic regardless of Friday’s transfer, showed that market expectations have been for a swift restoration.

Associated: Bitcoin reverses ‘bear market’ at $53.5K as Pfizer gains on fresh panic over coronavirus ‘Nu’ variant

On the time of writing, nevertheless, plainly the journey to lows of $53,500 was sufficient to reset the temper — funding charges are actually again to regular and present no bullish bias.

Bitcoin funding charges chart. Supply: Coinglass

As famous by analytics agency Delphi Digital this week, nevertheless, funding stays decrease relative to the primary half of 2021 — and this will sign an absence of general route.

“Funding charges proceed to be low on the futures markets. This may very well be an indication that the shorter-term leveraged merchants are nonetheless undecided directionally,” researchers told Twitter followers.

“Trying again initially of the yr, the bullish run-up has been accompanied by a considerably larger funding charge.”