TL;DR Breakdown:
- Bitcoin investors are currently fearful about the market, according to the fear and greed index reading.
- Funding rates are also low, which suggest buying opportunity.
Bitcoin investors have mixed feelings regarding the current state of the market. Since the flash crash a week ago, some doubt whether Bitcoin is back to a bear market or just a normal price correction. One thing is certain, however, and it is that Bitcoin investors are fearful about the current state of the market, which is considered the best time to long BTC.
F&G indicates Bitcoin investors are fearful
At the time of writing, the Bitcoin fear and greed index from Alternative scores the market at “30,” which means Bitcoin investors are a little bit extremely fearful. Just before the crash last Tuesday, investors were greedy, per the reading. The index score last week was 79 and 71 last week, meaning Bitcoiners were extremely greedy.
When the market is greedy, it means the price of BTC is due for a correction, which coincides with the crash last week. However, when in fear, it can be a sign that investors are too worried, which could also be seen as a buying opportunity. This reflects in the funding rates also.
Currently, funding rates are low, which connotes that Bitcoin investors are “fearful and we want to go long/buy spot,” says on-chain analyst, Caracal.
“At this point, we are in a very good position when it comes to the overall sentiment. While the price has left the accumulation zone, funding rates are still going sideways. People are fearful. We go.”
Bitcoin price update
Notwithstanding the bullish index, the largest cryptocurrency is yet to make any significant move to the upside. However, Bitcoin has been up by over two percent over the last 24 hours, with the price trading around $45,961. Bitcoin market cap is back up above $864 billion.
Source: https://api.follow.it/track-rss-story-click/v3/tHfgumto13AEufBOTTeNNWW0GqTRQSgk
