One of the classic Bitcoin indicators is emerging from its longest extremely bearish period in the indicator’s history. The uptick in this index comes amid a flurry of other bullish Bitcoin indicators flashing.
Classic crypto index leaves “extreme fear” after historic lows
The Crypto Fear and Greed Index began in early 2018. The index plots a value between 0 and 100, and ranges from 0 (extreme fear) to 100 (extreme greed). Ever since, this index is able to suggest the current investor sentiment.
Specifically, the index is made up of a basket of numerous metrics, including market volume, social media activity and volatility. Put simply, investors are more enthusiastic the higher score the index shows.
The tools creators suggest the index can “save you from your own emotional overreactions”. However, the past few weeks have seen the index reach a historic low.
Investor enthusiasm is rising for Bitcoin
In fact, the past 7 weeks saw the index plummet to extreme lows, following the COVID-19 coronavirus pandemic. The ongoing pandemic is the cause of substantial uncertainty and fear. However, there are now signs that this fear is subsiding.
According to fresh data from April 27th, the Crypto Fear and Greed Index is now leaving its lowest possible phase – namely “extreme fear” – after seven weeks of extreme fear. Specifically, the indicator is now leaving the “extreme fear” value for a “fear” valuation.
The following market visualization demonstrates the extraordinarity of the past few weeks. Nevertheless, things are now looking up for Bitcoin bulls. Although the COVID-19 coronavirus pandemic is far from over, the Bitcoin market now appears to be recovering.
Investors are getting bullish
Although the rise of this fear index is an encouraging sign for investors, it is not the only bullish indicator. Yesterday, the well-known MACD indicator metric also began flashing bullish, suggesting an imminent bullish cross.
Moreover, one Forbes article recently said 2020 could be “the new 2017” for Bitcoin. This is in line with a Bloomberg article that similarly said Bitcoin could be readying for a “2017-like leap”. Additionally, a series of commentators recently came out with lofty Bitcoin price predictions.
For example, Raoul Pal said he believes Bitcoin could rally to a massive $1 million by 2025. Furthermore, the upcoming Bitcoin halving event is pushing the price of Bitcoin past $7,500. As such, a number of factors currently look positive for the crypto market.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.