Crypto Market Drops Back Into ‘Extreme Fear’ As Prices Struggle

Dec 17, 2021
extreme fear crypto

[ad_1]

The crypto market has continued to battle after operating out of steam with its final rally. Over the last lap of the yr, the market as a complete will not be doing too properly, though costs of cryptocurrencies are method larger than they have been this time final yr. Nonetheless, there have been some fascinating developments which have emerged with the market crash that has seen costs stagnate at the moment.

The Worry & Greed Index has proven that market sentiment has gone into the acute damaging as soon as once more. With costs of high property like bitcoin and ethereum buying and selling beneath necessary assist factors, sentiment has fluctuated broadly out there however has principally stayed within the damaging. This time round, market sentiment has dropped low and landed within the ‘excessive worry’ territory.

Associated Studying | Algorand, Solana, And Extra Lead Checklist Of Greatest Shedding Altcoins

Crypto Market Basking In Worry

The crypto market has spent portion of the month of December within the worry territory. Market costs haven’t been probably the most favorable for the month and traders stay extremely cautious of moving into the market at such a time. Others have nonetheless seen this as a shopping for alternative like within the case of MicroStrategy, which purchased an extra 1,434 BTC bringing its complete holdings to 122,480 BTC.

The mixture for the month of November got here out to impartial on the sentiment aspect of issues after a tumultuous finish to an in any other case fantastic starting of the month. That has spilled into December as Christmas rolls round.

Chart showing Fear & Greed Index

Market goes into excessive worry | Supply: different.me

Yesterday the Worry & Greed Index had peaked at 29 on the chart, placing the market within the worry territory. This was up a bit from final week the place the market spent lengthy stretches in excessive worry. Immediately, market sentiment once more rolled into the acute worry territory with a low 23 on the chart.

The index being this low exhibits that there are low shopping for pressures out there and excessive promoting pressures. Promote-offs are nonetheless underway in varied digital property which have seen their costs dip into the pink. Because the market heads into the weekend which is normally characterised by low volatility, will the market be capable of pull itself out of utmost greed?

Bitcoin, Ethereum Undergo Losses

Bitcoin had made a splash out there when it had hit its new all-time excessive barely above $69,000 in the beginning of November. This had despatched the crypto market on what could be a memorable bull run as Ethereum got here near hitting the $5,000 mark not too lengthy after. However this might solely be short-lived because the downtrend had begun not too lengthy after.

Associated Studying | Crypto Bull Cathie Wooden Says Ethereum Is Extra Undervalued Than Bitcoin

For Bitcoin, the digital asset had misplaced as a lot as $10,000 in a single day that despatched it in the direction of the low $40,000s. Ethereum then again had held out for some time however succumbed to the downtrend in time.

Bitcoin is now buying and selling properly beneath $50,000 after failing to carry above this worth level this week. Ethereum is now buying and selling beneath $4,000, an important assist level for the digital asset. On the time of writing, bitcoin is buying and selling at $47,141 and ethereum is buying and selling at $3,826.

Crypto total market cap chart from TradingView.com

Crypto complete market cap at $2.16 trillion | Supply: Crypto Complete Market Cap on TradingView.com
Featured picture from Bitcoin Information, chart from TradingView.com

[ad_2]