Bitcoin sentiment is “wild” against reality, because $53,000 BTC triggers “extreme fear”


Bitcoin (Bitcoin) After falling by $6,000 in one day, it stabilized at around $55,000-but the cryptocurrency market sentiment is still in shock.

according to Crypto Fear and Greed IndexAs of November 27, the mood is now in its worst period since late September.

Cryptocurrency sentiment falls into “extreme fear”

Fear and greed require a basket of factors to calculate the standardized sentiment score of the crypto market, from 1 to 100, currently 21.

Friday had an impact on this indicator, and the score was reduced by more than half from the previous 47 in 24 hours.

These two readings correspond to emotions ranging from “neutral” to “extreme fear”-completely missing the “fear” area.

Encrypted Fear and Greed Index. Source: Alternative.me

Although one Expected response, The dramatic change in the emotional state of market participants is clearly becoming a source of entertainment for some familiar names.

Investor and entrepreneur Alistair Milne pointed out that “extreme fear” is hardly an appropriate response to a $54,000 BTC/USD transaction. In fact, the last time Bitcoin spot prices were at these levels in mid-October, fear and greed measured 78-the area of ??”extreme greed”.

“So much fear, our price is $54,000. Wild,” he Summarize.

On September 30, when the index touched 21/100 for the last time, the trading price of Bitcoin/USD on Bitstamp was approximately $43,800.

BTC/USD 1-day candlestick chart (Bitstamp). Source: TradingView

Fund interest rate see reset overnight

As Cointelegraph Report, The latest and deepest stage of BTC price adjustments. Traders who appear on exchanges are used to maintaining a strangely optimistic state.

Funding rateDespite actions taken on Friday, they remain optimistic, indicating that the market is expected to recover quickly.

related: As Pfizer profited from the new panic about the “Nu” variant of the coronavirus, Bitcoin reversed the “bear market” with USD 53.5K

However, at the time of writing this article on Saturday, it seemed that a drop to a low of $53,500 was sufficient to re-adjust sentiment-the funding rate has now returned to normal without a bullish bias.

Bitcoin financing interest rate chart. Source: Coinglass

However, as analyst firm Delphi Digital pointed out this week, funding is still low compared to the first half of 2021-this may indicate a lack of overall direction.

“Financing interest rates in the futures market are still very low. This may indicate that short-term leveraged traders have not yet decided on their direction,” the researcher Tell Twitter fans.

“Looking back at the beginning of this year, the bull market rise was accompanied by significantly higher financing interest rates.”