Fear & Greed Index hits lowest since March 2020 even as Bitcoin price hits $30.5K

Bitcoin (BTC), which was at $30,500 on May 17, saw hopes of avoiding a retest 2017 highs.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Retests ‘highly unlikely to occur’ at $20,000

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD rose after the daily close, to tentatively increase on $30,000.

The pair struggled to find a meaningful upward or downtrend in the multi-day range. Volatility remained high into the week.

Credible Crypto, a popular analyst, offered a more positive alternative to the feared retracement that could see it fall below its ten-month lows. He argued that Bitcoin had no incentive to retest $20,000 or less based on historical norms.

He wrote that the argument for 13K-14K$BTC is based on the assumption that past bear markets have resulted in 80% declines at the top.

“It’s the same assumption people made in June ’21 at 30k, before we rallied to a new ATH 65K three months later.”

Cointelegraph reported recently that contingency plans are in place for such an event. MicroStrategy, the company with the largest corporate BTC Treasury, is even ready to purchase up supplies to stem the fall.

Credible Crypto was skeptical when Credible Crypto was asked if BTC/USD would retrace its 2019 highs of $14,000 to the $3,000.00 floor during the March 2020 COVID-19 collapse.

“I didn’t expect that. It is possible. It is possible, but it has not happened in the past. He responded.

Michael van de Poppe from Cointelegraph said that the United States dollar was cooling its bull run against other fiat currencies to allow risk assets some breathing room.

He predicted that the U.S. Dollar index (DXY) would fall from its 20-year highs at 105 points.

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

“If you look at the current $DXY state, I believe we’ll continue with this scenario. The highs were swept for liquidity, assuming that we will see a corrective move. He tweeted May 16: “Losing 103.7 points, I believe we’ll see more downwards pressure there -> risk-on assets higher,”

March 2020: Sentiment echoing

The market sentiment data, however, reflected the consensus across crypto that anything could happen now with a bias strongly to the downside.

Related: The first 7-week losing streak of Bitcoin history — 5 things you need to know about Bitcoin this week

The Crypto Fear & Greed Index is a cross-market sentiment gauge that hit 8/100 May 17. This was two weeks after the Coronavirus-induced meltdown.

BTC/USD had already recovered from its lows by then, just like now. The pair rose 28% to $30,500 from the previous week.

Screenshot of Crypto Fear and Greed Index Source: Alternative.mecom. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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