Extreme Fear = Buying Opportunity?
According to current trends, the Crypto Fear & Greed Index is 7, which is just 7 points away from max extreme fear. To add, it’s the longest consecutive run for extreme fear in the history of this metric, as it’s 58 subsequent days already. Furthermore, the level of extreme fear was at 11, which means the chaos in crypto prices during the last week might have pushed the panic button.
However, as the crypto Fear and Greed index site says, the Extreme Fear indicator might suggest that it’s a good time to buy. However, it might not apply for all of the top crypto currencies, as altcoins usually have very different circumstances than Bitcoin (BTC) and Ethereum (ETH).
At the time of this writing, Bitcoin (BTC) is trading at $21,109.25, which still resembles the damage done by the most recent crypto market turmoil (30% down in the last 7 days). In contrast, a bullish pattern for this Thursday can be seen as the price spiked by 3.9% in the last 24 hours.
On the other hand, Ethereum (ETH) is trading at $1115.5 at press time, which is also an eye watering 37.8% less than a week ago. Similarly to the BTC situation, ETH has managed to get back 5.8% since the drop 24 hours ago. Nevertheless, Ethereum (ETH) is still in the red by 44.7% if compared to its market price a month ago.
As a plentiful amount of reports of whales buying BTC and ETH surface on the net, it looks like the top two digital assets in the crypto market are at a tempting price for purchase, but crypto enthusiasts are not sure how long this windy crypto winter will last, as there are numerous outside-the-market factors, such as war in Ukraine and US dollar inflation.
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Source: Cryptocurrency - investing.com
