Bitcoin (BTC) Sentiment in "Extreme Fear" Again; Last Time It Was So Bad Was in July
The crypto "Fear and Greed" index is a complex indicator that tracks volatility, market trading volume, social media discussions, market dominance and Google Trends, and it also displays whether the audience is optimistic or pessimistic about this or that asset.
Week of extreme fear
On Dec. 6, 2021, the Bitcoin (BTC) "Fear and Greed" index touched the 16/100 level for the first time in almost five months. Then, it bounced a little but, on Saturday, stabilized at this ultra-low level.
As such, Bitcoin (BTC) has failed to leave "Extreme Fear" waters for an entire week. It took only 28 days for the index to plunge from its eight-month high at 84/100.
In the short-term perspective, analysts are certain that the Bitcoin "Fear and Greed" index dropped to ultra-low levels because of Bitcoin's failure to hold above $50,000.
Alex DovbnyaThe last time the Bitcoin "Fear and Greed" index was so weak was when the crypto king traded below $30,000 in late July 2021, after the dramatic dropdown of Q2, 2021.
Is ETH/BTC "flippening" inevitable?
The net capitalization of the cryptocurrency market dropped below $2.5 trillion for the first time since Oct. 15. On Nov. 9-10, it managed to stay above $3 trillion for two days, which is an unmatched record.
Bitcoin (BTC) dominance (BTC.D), a ratio between the market capitalization of Bitcoin and the rest of the cryptocurrency market, inches closer to its seven-month lows.
Despite also being flat, Ethereum (ETH) performs slightly better than Bitcoin (BTC). the ETH/BTC ratio printed an impressive rally toward the 44-month high.
Typically, this combination of trends indicates an upcoming "altcoin season," i.e., the period during which the major altcoins perform significantly better than the orange coin.
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