How scared is the market about the price of Bitcoin?

The decline in the price of bitcoin has triggered extreme fear sentiment in the market, according to “Fear & Greed Index.”

The highest price bitcoin reached in the last 30 days was last September 13, when it traded at $22,539. Since then, its price has decreased, as it happened this Monday, September 19, when it was at 18,474 dollars.

The last two days, the price of bitcoin has generated “extreme fear” in the market, with values of 23 and 22 between yesterday and today, Thursday, according to Alternative.me.

This fear has been sustained since September 19, after the fall of prices in the cryptocurrency market. Last week the feeling in the market was one of fear.

This index shows the degree of fear of loss when the price of bitcoin falls and greed when it rises in value.

The pattern is measured from 0 to 100. The closer it is to zero, the greater the fear in the market, while the closer it is to 100 the greater the greed or avarice.

The fear and greed for bitcoin in the last few days

Since August 24, market sentiment has hovered between Fear and Extreme Fear.

This pattern held throughout the last 30 days, with the closest point to breaking the trend on September 14, i.e. the day after reaching the peak price during this period, when it stood at $22,539.37.

What is the Fear and Greed Index based on?

The indicators that define the Fear and Greed Index are based on:

• Market volatility: it counts for a 25% percentage within the index. Studying the purchases and withdrawals to obtain the volatility of the market by comparing it with its history of the last weeks.
• Market volume: it also has a weight of 25% and is mainly based on the amount of purchases and withdrawals to obtain the volume.
• Interaction in social networks: keywords are studied to analyze how much a currency is talked about, based on the rate of public interaction. It has a weight of 15%.
• Surveys: based mainly on the opinion of the public, at least 2,000 opinions are required. Although it has 15% of the index, this option is not currently active.
• Currency dominance: this indicator is similar to its market capitalization, but based on the reduction or growth of holders. It has a value of 10% of the total index.
• Trend: It is very similar to the social network interaction indicator, but in this case Google Trends is used. It has 10% of the index.

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