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Bitcoin (BTC) Sentiment in "Extreme Fear" Again; Last Time It Was So Bad Was in July

Sat, 12/11/2021 - 20:07
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Vladislav Sopov
Cryptocurrency "Fear and Greed" index dropped to uber-bearish levels this week. Is this signal of "buy the dip" opportunity?
Bitcoin (BTC) Sentiment in "Extreme Fear" Again; Last Time It Was So Bad Was in July
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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.

Bitcoin (BTC) sentiment stabilized in 'Extreme Fear' zone
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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.

Extreme Fear Returns As Bitcoin Stalls Below $50,000

The 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.

Ethereum (ETH) Reaches Highest Level Against Bitcoin Since May 2018. Is Flippening Imminent?

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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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

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