The index of the fear and greed, which is offered by Alternative.me, is one of the most important measures fundamental analysis concerning the world of cryptocurrencies – and in particular Bitcoin.
The values that have been produced today are further interesting, because they signal a possible bottom, that is a minimum achieved by the sector – and if we had to take into account what happened during the last one market crash, this would be the right time to enter the market.
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Maximum fear on the index: it is a very good sign
L’index edited by Alternative.me has reached an important level. 21 your 100, with the lowest score signaling greater fear. We are facing a level of utmost fear, which is, however, an excellent signal not only for Bitcoin, but for the whole cryptocurrency sector.
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Tendentially and historically we are faced with a market situation that signals i minimum and that in the past it was signal for the return of purchases. A fear that, as readers of Criptovaluta.it – it depended on external issues that have the other markets were equally affected, such as the equity ones as much in the USA how much in Europe.
A signal clear e unequivocal? Again taking into account the history yes, because it was this, point plus point minus, the level that a June it’s at July it has stimulated the return of purchases, both institutional and private.
What does fear mean?
It is an index, in this case, which takes into account various variables, such as volatility, the short open to the market and sales spot. It has always been a very reliable index, which many investors turn to for to integrate their reading offundamental analysis.
It is, we add, historically one of the most important signals crystalline of the end of a descending phase – regardless of the reason that triggered it. If we were looking for a sign of bottom, or at the bottom of the descent, it is difficult to find better ones.
How to move in a market context of this type
We take a risk by saying that we believe it is a phase, once again, of lateral movements that it has actually reached lowest point of the channel and that it will hardly go down consistently again, net of the very particular movements that generally occur during the weekend.
The fact that the supports most important ones have fundamentally held is another sign that, at least looking at the graphs, there should be no further major falls. Unless there are sensational events on the markets, which will not only affect the crypto market.
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