The group of unrelenting investors of Bitcoin are not going to allow the 21% of plunge on Saturday, in just few hours, will certainly curb their fervor.
Fear & Greed
Such investors are promoting the index of “Fear & Greed” through Twitter and various other platforms of social media. This could help them to justify their claim where the recent drop in the rates is a wonderful opportunity to get the movement in Bitcoin.
However, in the traditional markets, measure of Fear-Greed are on gauge of client’s sentiment. It is mainly based on factors like volatility, demand and momentum. According to the crypto version —the Fear and Greed index helps to establish that if the traders are quite bullish or bearish. It also takes various other factors in consideration such as trends of social media and terms of Google search.
How does Fear & Greed Index works?
This index usually ranges from 0 which is “Extreme Fear” to 100 which means “Extreme Greed”. It is currently moving at 25. When there is the Bitcoin scale which had record high of about $69,000 previous month, it was near to 80. Rates of largest cryptocurrency are now trading at $51,000 on Tuesday.
Bitcoin Fans and this Index
The fans of Bitcoin interpret this index, along with the comparatively lower price of Bitcoin, it means that this is simply oversold and the prices will also go rebound and touch the sky.
Also, pictures of index are creating the rounds at social media, with few of them referring to chart,
The investor who keeps a close eye on Index prefer to add altcoins to the portfolio which includes Ripple, Bitcoin and Ethereum.
The enthusiast of Bitcoin has in past used great array of reasons which explain that why drops in the prices of Bitcoin are flawlessly normal, that consist of comparing it with the earlier bull runs, or saying that volatility is a part of digital currency.
