Bitcoin (BTC) Price 'Peak Fear' May Be In: Analysts

News
Tue, 03/24/2020 - 11:53
Vladislav Sopov
'Decoupling', i.e. losing the correlation with the plummeting stock market, has replaced 'halving' as the most crucial point of the Bitcoin (BTC) bull narrative
Cover image via stock.adobe.com
Contents

With the Federal Reserve announcing an 'unlimited' money injection, meme authors are mocking the value of fiat currencies. This will certainly result in a new search for a 'safe haven'. The analyst who accurately predicted the Bitcoin (BTC) price behavior over these recent tough days claimed that one indicator is crucial for 'decoupling'.

Peak may be in

Well-known cryptocurrency analyst Willy Woo posted a chart to spark a discussion on whether this notorious decoupling of the 'safe havens' (Bitcoin and gold) with the falling stock markets is real. According to him, next week's price and index movements will provide the definitive answer.

Another analyst, Charles Edwards of Capriole Investments, added that there is one indicator that could help solve this problem. According to him, if the Fear & Greed Index continues to rise, the likelihood of decoupling will do the same.

Peak fear *may* also be in for now. The Fear and Greed index (now highest value in weeks at 10) suggests the worst fear may be in for the time being. If this continues to rise, so does the probability of decoupling. 

It looks like this theory plays out as the CNN Fear & Greed Index for the Stock Market is as low as 5 today while the Alternative Fear & Greed Index for Crypto is 7 points closer to the Greed Zone.

Image by Alternative

As U.Today previously reported, one week ago this crypto indicator also hit the five-point level. Thus, it took seven days to make this small move out of Extreme Fear territory.

When fear becomes greed

It was Charles Edwards who masterfully predicted the correlation between stock and crypto price movements within times of big fear and big greed. He highlighted that it is only these two zones that reveal a high level of correlation

When markets are in Extreme Greed: investors are attracted to risky assets and Bitcoin performance correlates with equities, or when markets are in Extreme Fear: investors dump risky assets and Bitcoin performance correlates with equities.

Recent days have confirmed that this theory is highly accurate. Bitcoin (BTC) bulls can only hope that the $100,000 'energy value' prediction by Mr. Edwards will be as precise as his last 'Amygdala Overdrive Relationship' law for crypto-stock correlation.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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