As bitcoin fell below $ 57,000, the market began to fear for the first time since early October …
Following the recent downturn in the cryptocurrency market, which saw Bitcoin lose nearly 20% (against an all-time record of around $ 69,000), investor sentiment has changed significantly. For the first time in almost two months, the fear and greed indicator entered the area of ”fear”.
Fear has big eyes?
The popular Bitcoin Fear & Greed Index is an indicator that takes into account several factors in the digital asset community to capture the short-term sentiment of the market towards a leading cryptocurrency. It takes into account segments such as asset volatility, volume, social media comments, and more. The index lists scores ranging from 0 (“extreme fear”) to 100 (“extreme greed”). Yesterday the gauge dropped to 34 (Fear). At the time of preparing this publication, he indicated 43:
It is worth noting that the last time the Index reached this level was on October 1. Back then, the price of bitcoin was around $ 42,000. However, throughout October, the cryptocurrency saw significant gains. At one point, the price of the asset soared and reached a record high of nearly $ 65,000.
The first ten days of November were also very successful for BTC. Last week, bitcoin was even ready to attempt an attack on the legacy ATH of around $ 69,000, while its market capitalization reached $ 1.3 trillion for the first time.
Nevertheless, the cryptocurrency industry experienced a significant correction last week. At the time of writing, the BTC price was trading at $ 58,600.
Is this the right time to “buy a hole”?
Although the word “fear” can be associated (especially for new investors) with some kind of warning against buying in the digital asset market. Paradoxically, as Warren Buffett used to say, “you have to be greedy when others are afraid.” Most experts believe that fear in the market is often a great opportunity to buy.
The above opinion seems to be shared by the third largest bitcoin whale. Three days ago, he bought 1,647 BTC for under $ 60,000 apiece. The total purchase amount was nearly $ 100 million. From November 18, this address was purchased by another 2,218 BTC.
📉 The #dip down to $ 60.6k is the lowest #Bitcoin has been valued in nine days. The -7% slide in the past 24 hours has been met with rising interest from traders to #buythedip. Typically, a bit of crowd fear will be necessary to have prices fully rebound. https://t.co/l6zTl09D8E pic.twitter.com/2Ghd6XpWYP
– Santiment (@santimentfeed) November 16, 2021
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