{"id":9912,"date":"2021-07-21T21:55:28","date_gmt":"2021-07-21T21:55:28","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/crypto-fear-and-greed-index-taps-low-at-extreme-fear-btc-technicals-point-to-uncertainty\/"},"modified":"2021-07-21T21:55:28","modified_gmt":"2021-07-21T21:55:28","slug":"crypto-fear-and-greed-index-taps-low-at-extreme-fear-btc-technicals-point-to-uncertainty","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/crypto-fear-and-greed-index-taps-low-at-extreme-fear-btc-technicals-point-to-uncertainty\/","title":{"rendered":"Crypto Fear and Greed Index Taps Low at \u2018Extreme Fear,\u2019 BTC Technicals Point to Uncertainty"},"content":{"rendered":"

On Wednesday, following the drop below the $30,000 region, bitcoin\u2019s price has rebounded more than 8% since Tuesday\u2019s low. Meanwhile, the sentiment metric recorded by the Crypto Fear and Greed Index (CFGI) is extremely low, pointing to \u201cextreme fear\u201d in the market. Despite being a scary term, the time is usually the best time to obtain assets for a lower price. However, data from Tradingview\u2019s technicals show bitcoin is still in the \u201csell\u201d range, while bitcoin market oscillators are more \u201cneutral.\u201d<\/strong><\/p>\n

CFGI Sentiment Metric Reaches \u2018Extreme Fear\u2019<\/h2>\n

The price of bitcoin (BTC)<\/a> tapped a low of $29,300 on July 20, 2021, and since then the price has managed to jump back above the $32,000 handle. Despite the rebound, there\u2019s a lot of uncertainty within the crypto space as far as short-term bitcoin price predictions are concerned.<\/p>\n

BTC<\/a>\/USD chart shows bitcoin managed to climb back above the $32K zone on Wednesday.<\/p>\n

Some believe the price may plunge to the $20,000 zone again and others believe a rebound is in the cards and the next trajectory will be well above the $64K all-time high. Most traders who believe this rebound could happen, think that today\u2019s bitcoin price movements are eerily similar<\/a> to the prices BTC saw in 2013<\/a>. At that time, BTC<\/a> plunged to $50 per coin after skyrocketing well above the $200 handle in mid-May 2013.<\/p>\n

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Crypto Fear and Greed Index (CFGI) hosted on the website alternative.me on July 21, 2021.<\/p>\n

Bitcoin\u2019s price<\/a> then jumped close to 2,400%<\/a> after the summer 2013 low, and surged to the crypto asset\u2019s first four-digit USD all-time high. After BTC<\/a> dropped to $29,300 on Tuesday, the Crypto Fear and Greed Index (CFGI)<\/a> tapped a low of ten on the charts. The score of ten is not the lowest point the CFGI metric has recorded but it is very low in comparison to most days. The last time the CFGI metric recorded a ten was in mid-June and at the end of May as well. Since the end of May, the CFGI metric hasn\u2019t been this low in over a year as the last time the CFGI hit a ten or lower was during the March 12, 2020 market rout, otherwise known as \u2018Black Thursday<\/a>.\u2019<\/p>\n

While the extreme fear sentiment may seem dismal, traders believe it is one of the best entry points to get into any market. A market filled with panic sellers and \u201cextreme fear\u201d is sure to see cheaper assets than one filled with \u201cextreme greed,\u201d which is the highest end of the CFGI spectrum. Essentially the CFGI analyzes \u201cemotions and sentiments from different sources and crunches them into one simple number,\u201d the website details.<\/p>\n

<\/p>\n

Oscillators and Moving Averages Tell a Similar Story<\/h2>\n

In contrast to the CFGI, Tradingview\u2019s BTC\/USD technicals<\/a> show a similar story but some of the indicators can be perceived as a different outlook. A single-day summary of Tradingview\u2019s BTC<\/a>\/USD technicals shows a scale toward the \u201csell\u201d range.<\/p>\n

Tradingview\u2019s BTC<\/a>\/USD technicals on July 21, 2021, at 12:00 p.m. (EDT).<\/p>\n

Moving averages (MA) are different and Tradingview\u2019s MA technicals point to the \u201cstrong sell\u201d range. Alongside this, BTC\/USD<\/a> oscillators are a bit warmer and are indicating a \u201cneutral\u201d range. For instance, the relative strength index (RSI 14) shows \u201cneutral\u201d and stochastic (14, 3, 3) also indicates things are \u201cneutral.\u201d<\/p>\n

Tradingview\u2019s BTC<\/a>\/USD technicals, specifically oscillators and moving averages on July 21, 2021, at 12:00 p.m. (EDT).<\/p>\n

All the moving average indicators suggest the \u201csell\u201d range while the simple moving average (SMA 10) and the exponential moving average (EMA 10) are in the \u201cbuy\u201d range. As far as BTC\/USD<\/a> oscillators, the only signal for \u201cbuy\u201d is the momentum indicator but the moving average convergence divergence (MACD), a trend that follows momentum, is recorded as a \u201csell\u201d on Wednesday.<\/p>\n

Delta Exchange CEO Says \u2018$30K Has Proven to Be Reliable Support Since May\u2019<\/h2>\n

Meanwhile, despite the plunge on Tuesday morning, bitcoin (BTC)<\/a> continues to hold a support zone. In a note sent to Bitcoin.com News, Delta Exchange CEO Pankaj Balani explains the current support, at least so far, has been reliable.<\/p>\n

\u201cBitcoin has been grinding lower since the start of this month,\u201d Balani said. \u201cVolatility has compressed significantly with a lower range. Bitcoin is trading in a significant support zone of $29 \u2013 $31K USDT<\/a>. $30K has proven to be very reliable support since May. A breakdown of this level is likely to result in a significant increase in volatility and a final capitulation of crypto assets. That said, BTC<\/a> is still in the $30K \u2013 $40K rectangle until a conclusive breakdown takes place,\u201d the Delta Exchange executive added.<\/p>\n

What do you think about bitcoin\u2019s CFGI metric tapping \u201cextreme fear\u201d and the technicals from today\u2019s Tradingview stats? Do you agree with Pankaj Balani\u2019s reliable support comment? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nMarket Updates, 2013, Bitcoin, Bitcoin (BTC), BTC\/USD, CFGI, Crypto Fear and Greed Index, Delta Exchange CEO, EMA, extreme fear, extreme greed, M&A, Market Update, Markets, Prices, rebound, Relative Strength Index, SMA, Stochastic, Technicals<\/p>\n","protected":false},"excerpt":{"rendered":"

On Wednesday, following the drop below the $30,000 region, bitcoin\u2019s price has rebounded more than 8% since Tuesday\u2019s low. Meanwhile, the sentiment metric recorded by the Crypto Fear and Greed Index (CFGI) is extremely low, pointing to \u201cextreme fear\u201d in the market. Despite being a scary term, the time is usually the best time to…<\/p>\n","protected":false},"author":0,"featured_media":9913,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-9912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9912"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=9912"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9912\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/9913"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=9912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=9912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=9912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}