Against the background of the rise in Bitcoin price and the leading altcoins, the cryptocurrency “Fear & Greed Index” rose to the values of August. The value of the indicator is at 65 points now, while half a year ago it was at 66.
The Crypto Fear & Greed Index is a cryptocurrency index for Bitcoin that reflects the mood of market participants. If the scale indicates “fear”, the market falls and the price tends to the minimum values. And the indicator “greed” signals the overheating of the asset and may indicate the approaching correction.
Based on the new indicator, we can see, that cryptocurrency investors are currently very positive.
The specified index was developed by the alternative.me portal. The authors analyze the following factors such as volatility, market dynamics, trading volumes, social media trends, data from various studies, the BTC dominance index, as well as Google Trends data.
At the same time, the specialists of The TIE research company presented their analysis of the position of the most capitalized cryptocurrency. To do this, analysts have published a chart of the volume of tweets about Bitcoin. The data based on the posts on the social network about other assets. It turned out that the number of references to BTC has reached a local minimum at the moment.
Bitcoin's share of total cryptocurrency tweet volume has just hit an all-time low below 32% pic.twitter.com/HCdHqbEUXN
— The TIE (@TheTIEIO) February 12, 2020
Recall, The TIE team is promoting the idea that data on the number of mentions of cryptocurrency on Twitter can be used to predict its future movement. The development of specialists was involved in the trading strategy proposed by the eToro platform.
Note, that the number of searches for Bitcoin and BTC is also far from peak values, according to Google Trends data.
Meanwhile, participants in the crypto community drew attention to the fact that at the moment bitcoin is approaching a stable level, which could become an obstacle to its further growth.
👑#BTC Video Analysis👑
– as long as 10.2k holds, still bullish
– 10.2k rejection, bearish
We need more sell volume to sustain a bigger sell-off, market structure is still intact pic.twitter.com/qMWiUzTyuA
— Theo📚 Crypto99™ (@theo_crypto99) February 13, 2020
However, the cryptocurrency market remains positive. Since Monday, the main market indicator has added about 4.9%, and by now its value is $ 299 billion.
The probability of the continuation of the trend is above average. Therefore, the most logical approach is a combination of trading strategies concerning this coin. It is advisable to search for entry points in this phase of the market as part of the impulse approach, buying a certain volume with a stop loss, or as part of a trend, opening some position on pullbacks.
The Global Context
- Fed spokeswoman said the Federal Reserve is currently exploring the possibility of issuing its own digital dollar at a conference at Stanford GSB;
- A precedent for the confiscation of a cryptocurrency used for criminal has been fixed by the court in Latvia.
- The Bitcoin SV network hosted the Genesis hard fork. The update will improve scalability and achieve more stabilization of the system;
- The Chairman of the CFTC Heath P. Tarbert believes that ETH futures will appear on the market in the near future.