On Wednesday, Bitcoin price rebounded more than 8% after falling below the $ 30,000 region since Tuesday’s low. Meanwhile, the sentiment metric recorded by the Crypto Fear and Greed Index (CFGI) is extremely low, indicating “extreme fear” in the market. While it’s a scary term, time is usually the best time to purchase assets at a lower price. However, data from the technical data from Tradingview shows that Bitcoin is still in the “sell range” while the oscillators of the Bitcoin market are more “neutral”.
CFGI Sentiment Metric Achieves “Extreme Fear”
The price of Bitcoin (BTC) hit a low of $ 29,300 on July 20, 2021 and has since climbed back above the $ 32,000 mark. Despite the rebound, there is a lot of uncertainty in the crypto space about short-term Bitcoin price predictions.
Some believe the price could drop back into the $ 20,000 zone and others believe that a rebound is in sight and the next price will be well above the all-time high of $ 64,000. Most traders who believe this rebound could happen think that today’s Bitcoin price movements are eerily similar to BTC’s prices in 2013. At the time, BTC plummeted to $ 50 per coin after climbing well above the $ 200 mark in mid-May 2013.
The price of Bitcoin then jumped nearly 2,400% after the low in the summer of 2013 and rose to the first four-digit USD all-time high for the crypto asset. After BTC fell to $ 29,300 on Tuesday, the Crypto Fear and Greed Index (CFGI) hit a low of ten on the charts. The score of ten isn’t the lowest point the CFGI metric has recorded, but it is very low compared to most days. The last time the CFGI metric hit a ten was in mid-June and also in late May. Since the end of May, the CFGI metric hasn’t been this low in over a year, as the CFGI last hit a ten or lower during the market exodus on March 12, 2020, also known as Black Thursday.
While the extreme fear of fear may seem grim, traders believe this is one of the best entry points to get into any market. A market full of panic sellers and “extreme fear” will certainly see cheaper assets than a market full of “extreme greed,” which is the highest end of the CFGI spectrum. In essence, the CFGI analyzes “emotions and feelings from different sources and summarizes them into a simple number,” it says on the website.
Oscillators and moving averages tell a similar story
Unlike the CFGI, Tradingview’s BTC / USD technicals show a similar story, but some of the indicators can be perceived as other prospects. A one day summary of BTC / USD techniques from Tradingview shows a scale towards the “sell range”.
The moving averages (MA) are different and Tradingview’s MA techniques indicate the “strong sell” area. In addition, the BTC / USD oscillators are a bit warmer and indicate a “neutral” area. For example, the Relative Strength Index (RSI 14) indicates “neutral” and stochastic (14, 3, 3) also indicates that things are “neutral”.
All moving average indicators point to the “sell range” while the simple moving average (SMA 10) and exponential moving average (EMA 10) are in the “buy” range. As for the BTC / USD oscillators, the only “buy” signal is the momentum indicator, but the moving average convergence divergence (MACD), a trend that follows momentum, is recorded as a “sell” on Wednesday.
Delta Exchange CEO Says, $ 30,000 has proven to be reliable support since May
Meanwhile, Bitcoin (BTC) continues to hold a support zone despite the Tuesday morning slump. In a note posted to Bitcoin.com News, Delta Exchange CEO Pankaj Balani stated that current support has been reliable, at least so far.
“Bitcoin has been down since the beginning of this month,” said Balani. “The volatility has been compressed significantly with a lower range. Bitcoin trades in a significant support zone of $ 29 to $ 31,000. $ 30,000 has proven to be very reliable support since May. A collapse of this level is likely to lead to a significant spike in volatility and final surrender of crypto assets. That said, BTC is still in the $ 30,000- $ 40,000 rectangle until a final breakdown occurs, “added the Delta Exchange manager.
What do you think of Bitcoin’s CFGI metric tipping “extreme fear” and the technicals of today’s Tradingview stats? Do you agree with Pankaj Balani’s trusted support comment? Let us know what you think on this matter in the comments below.
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