The Bitcoin Fear and Greed Index Has Reached an Extremely Concerning Level
The Fear and Greed Index went from 27/100 to 21/100 during today’s trading sessions, reflecting a decrease. The index reacted negatively to the negative sentiment in the cryptocurrency market as well as Bitcoin’s price dropping below $20,000 again. This caused it to drop into the extreme fear region, confirming the market’s signal that it is anxious about the economic outlook and the activities of the Fed.
Getting out of the sub-20/100 range was still very important, but a crypto bear would look for a dip to the sub-20/100 range to confirm Bitcoin’s decline to below $18,000. On the other hand, bulls will keep an eye out for returns to 40/100 as support for an upward advance to $25K.
Price Activity in BTC
While I was writing this blog post, the price of Bitcoin was still below the $20,000 barrier and appeared to be getting ready for additional drops. The cryptocurrency needs to make a move higher than the pivot point, now located at $19,631, in order to aim for the initial big resistance level located at $19,912 and the $20,125 Sunday high.
In the meanwhile, market participants will concentrate their attention on the forthcoming financial decision, with the NASDAQ 100 most likely to influence price movements. Nevertheless, a pessimistic outlook is warranted at this time given the current circumstances. For example, the four-hour candle chart and the exponential moving averages both pointed to downward inclinations. The following hours are likely to bring about further drops for investors.