Cryptocurrency market between fear and greed 2022
Fear and greed these terms may be strong and strange, but in the cryptocurrency market, they may be familiar in a volatile market characterized by feelings and emotions greatly in trading related to them.
So what indicator measures the fear and greed of investors in the cryptocurrency market is the Crypto Fear & Greed Index.
It measures the extent of extreme greed when it is in the green zone or at the hundredth point, even if it is at the zero point, it measures extreme fear.
And the numbers between zero and a hundred determine the extent of fear or greed in the sense of buying demand on this day the indicator stands at the level of 22, which is fear, not extreme fear only when it is not extreme fear, and this indicates that there are fears in the market, but not big fears.
This indicator is measured on or has various ratios that are measured by the operations in the indicator, firstly, volatility through the volatile mood for me investors.
And it measures the entry and exit operations on cryptocurrencies and compares them with the levels of thirty days and ninety days, as well as the market determinism of the market or market value.
And it also relies on social media, most notably Twitter, in dealing or in assessing the turnout of investors and their dealings with cryptocurrencies.
Fear & Greed Index TradingView
As well as also has opinion polls and ah Google Trends or trends via Google regarding my cryptocurrencies and market dominance.
Also, if we look at the indicator or at this graph, which indicates that the highest levels of my greed for cryptocurrencies, specifically in bitcoin and the market in a big way, were reached in November.
Last year in the Year Two Thousand and twenty -, and that's when the prices reached and the price of bitcoin specifically reached the level of about sixty-nine thousand dollars this was the area of greed and the index reached the level of eighty-six, but in June of this year.
When bitcoin fell and without the levels of eighteen thousand dollars, we saw the highest levels of fear for me Bitcoin when it fell below these levels while continuing to raise what's the point.
But during this year we saw a fluctuation in correlation transactions, which means that at the beginning of this year we were watching our correlation between bitcoin.
The cryptocurrency statement, and the people's index Daco technology stocks or growth stocks in the United States, but the rudder changed and turned to the correlation between the US dollar and bitcoin.
Specifically since the beginning of raising interest rates, the correlation coefficient between the two sides reached ninety percent, but it is the reverse correlation as soon as the dollar rose.
Bitcoin, on the other hand, fell due to the increase in interest rates, the demand for the dollar, and the exit from the markets on its risks, specifically the cryptocurrency market.
And therefore we have seen since the interest rate hike and the beginning of the US Federal Reserve in raising interest rates. Until now, bitcoin has fallen by about fifty-eight percent, but if we look at the current month of October.
Despite the negativity we are talking about following the interest rate hike, October throughout the history of cryptocurrencies is a positive month par excellence. Cryptocurrencies often warm up.
fear and greed index bitcoin
Specifically, in bitcoin to positive levels, positive performance is historic for bitcoin, which probably reached six of the six years out of seven in which the market rose or rose in October.
Specifically if we look at the year of two thousand and seventeen, only eighteen is the only month in the seven years in which it did not rise, but in the rest of the months it witnessed successive rises and reached the market value of the cryptocurrency market.
So far, sixty-nine billion dollars are below the trillion dollar level, so despite the fear at the moment of distrust and uncertainty in the markets, October may be the month of rebound for bitcoin.