Market Re-Enters Extreme Fear Territory As Bitcoin Declines To $36k

The crypto fear and greed index shows market is back in the extreme fear territory as Bitcoin has once again declined to $36k.

Market Sentiment Returns To Extreme Fear As Bitcoin Drops To $36k

Recently, as the price of the crypto recovered back above $38k, the market sentiment rose to that of fear. However, today, the price of BTC has again declined, leading to a return to extreme fear sentiment.

The relevant indicator here is the “fear and greed index,” which measures the general sentiment among Bitcoin investors.

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The metric uses a numeric scale that goes from zero to hundred to represent the sentiment. Values below fifty mean the market is currently fearful, while values above the threshold signal a sentiment of greed.

The extreme values of more than 75 or below 25 imply that investors are currently facing extreme greed or extreme fear, respectively.

Related Reading | Bitcoin Sees Poor Demand As Investors Try to Defend $37K, Is BTC In Trouble?

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Very high values of the indicator usually occur around tops. On the other hand, very low values may be there during bottom formations.

Because of this, some traders believe that it’s best to sell during extreme greed and to buy during extreme fear. As Warren Buffet put it, “Be fearful when others are greedy, and greedy when others are fearful.”

Now, here is a chart from the latest weekly Arcane Research report that shows how the Bitcoin fear and greed index briefly rose up in value recently:

Bitcoin Fear And Greed Index

The trend in the metric over the past year | Source: The Arcane Research Weekly Update - Week 4

As you can see in the above graph, the Bitcoin market has been extremely fearful for a while now as the price has continued to struggle.

However, a few days back the sentiment improved a bit to that of fear as the crypto showed some recovery. On Sunday, the indicator surged to a value of 30, the highest it has been in the year 2022.

Related Reading | Volume Of Bitcoin Illiquid Supply Points To Growing Bullish Sentiment

At the time the report with the chart came out, the metric still had a value of 26. But now that Bitcoin has dropped below $37k again, the market sentiment has once again shifted into one of extreme fear.

Bitcoin Extreme Fear

The fear and greed index has a value of 20 right now | Source:

It’s currently unclear when the sentiment may see a real improvement. Back during the May-July 2021 mini-bear period, such extreme fear values continued for a few months before the bottom was in.

BTC Price

At the time of writing, Bitcoin’s price floats around $36.7k, down 0.1% in the past week.

Bitcoin Price Chart

BTC's price has plunged down in the past 24 hours | Source: BTCUSD on TradingView
Featured image from, charts from, Arcane Research


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As Crypto Market Goes Into “Extreme Greed,” Is Bitcoin Set For New All-Time High?

Bitcoin price recently broke past $50,000 as the entire crypto market experienced a surge. Investor sentiment has been greatly skewed into the positive with this break of the $50K resistance point, increasing the buy pressures all around the market.

There are various tools used to measure how investors are currently feeling towards a particular asset. In this case, the Fear & Greed Index helps to measure the general sentiments around the top coins in the crypto market. The week has started on a high note with the Fear & Greed Index index at a score of 79 today. Putting sentiments around top coins like bitcoin in the region of extremely positive.

Picture of the Fear & Greed Index with the indicator pointed to 79 at extreme greed

Picture of the Fear & Greed Index with the indicator pointed to 79 at extreme greed

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Fear & Greed Index goes into extreme greed | Source: Fear & Greed Index from

Market Turns To Extreme Greed

The market has spent the last week in greed according to the Fear & Greed Index. Now, following bitcoin going to $52K, the pin has now moved straight into “Extreme Greed.” This is a result of investors, both old and new, clamoring to get their hands on as much bitcoin as possible. At this point in time, accumulation looks to be the name of the game.

Related Reading | These Three Lagging Altcoins Are Poised For A Breakout, Says Crypto Strategist

The Fear & Greed Index jumped six points in the span of 24 hours to land at 79 on the index, which put it directly in the “Extreme Greed” territory. Measuring emotions and sentiments in the market have shown that investors have gotten into the phase where they want to get their hands on the top cryptocurrencies in the market.

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For Bitcoin, this means that the asset is nowhere near being done with its current rally. Testing above $52K earlier, the digital asset had been thrown back downwards as the price mounted a resistance at this point. But this dip would not last long as bitcoin promptly found its footing above $51K again. With investors buying back into cryptos, the price of bitcoin looks set to mount another rally from its current point.

Bitcoin price chart from

Bitcoin price chart from

BTC expected to hit $100,000 by year-end | Source: BTCUSD on

Market analysts have put the price of the digital asset at $100,000 by the end of the year. While this may seem ambitious, accumulation patterns continue to point towards this being the most likely endpoint for the asset. September has historically been one for the bears, so the dips at this point are understandable. With the market picking up momentum after each dip, a price surge towards $60K looks imminent.

Good News Around Bitcoin

Tomorrow will see the first country in the world to accept bitcoin as legal tender. The country of El Salvador had announced earlier in the year that it was accepting BTC as a legal tender alongside the dollar. The set date for this law to go into effect was put at September 7th, which has sparked a lot of interest in the digital asset.

Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course

With the adoption less than 24 hours away, the market has responded quite positively to this news. Today, the price of bitcoin broke $52K for the first time since May, marking the continuation of the current bull market. And as El Salvadorans get ready to use BTC as a legal means of exchange, the world watches in anticipation of how the implementation will go.

Featured image from CryptoPotato, chart from


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Fear And Greed: Sentiment Turns Neutral As Bitcoin Stagnates, What To Do?

It’s the calm before the storm. What to do when the Fear and Greed index turns grey? Warren Buffett already told us to be greedy when others are fearful. We already know that we should be fearful when others are greedy. What should we do when the market it’s at a rare state of balance and expectations are high? We should probably take a page for those Bitcoin maximalists and… wait for it… HODL!

One of the main criticisms that the Fear and Greed Index gets is that it encourages traders and investors to try to time the market instead of holding strong. Bad things happen to those who try to time the market. Yet, we try to do it. The temptation is too strong. Bad things happen to those who trade emotionally. Yet, some fall for that trap over and over again. In fact, it could be argued that the Bitcoin and cryptocurrencies markets are even more emotional than the traditional ones. And that’s saying a lot. 

In any case, before making any rash decisions, we should remember what we’re talking about here.

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Fear & Greed Index, Arcane Research chart

Fear & Greed Index, Arcane Research chart

The Fear & Greed Index goes into neutral territory | Source: Arcane Research

What Exactly Is The Fear And Greed Index?

We at NewsBTC deal with this constantly. Even though the Fear and Greed Index is a criticized and questionable indicator, there’s an undeniable connection to the market that’s obvious even to the casual observer. When we found a bizarre correlation between the Fear & Greed Index and UTXO data, we prefaced it with:

“As a speculative asset, nothing else quite behaves like Bitcoin. Shifts in sentiment take price action to the extreme. As a result, tools have been developed to monitor the fear or greed in the market.”

The website calculates the main Fear And Greed Index for cryptocurrency markets, they explain its reason to be as:

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The crypto market behaviour is very emotional. People tend to get greedy when the market is rising which results in FOMO (Fear of missing out). Also, people often sell their coins in irrational reaction of seeing red numbers. With our Fear and Greed Index, we try to save you from your own emotional overreactions. There are two simple assumptions:

  • Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.

  • When Investors are getting too greedy, that means the market is due for a correction.

We, very simply, explained why when we described how the Fear And Greed Index can be used as a trigger indicator:

“Financial market sentiment can almost always be used as a contrarian indicator. But in a speculation driven industry where hype and buzz matter more than fundamentals, this is even more true.”

BTCUSD price chart for 08/04/2021 - TradingView

BTCUSD price chart for 08/04/2021 - TradingView

BTC price chart on Bitstamp | Source: BTC/USD on

What Does It Mean When The Sentiment Turns Neutral

After what seemed like years of coldness and extreme fear, the market sentiment started improving as early as a week ago. And, even though it doesn’t feel that way, this advance into neutral territory is a huge improvement. As Arcane Research said in their “The Weekly Update” report:

“The Fear & Greed Index has climbed rapidly since late July and touched neutral levels for the first time since May. Despite the slight decline in the last couple of days, the market is certainly getting more bullish. This bullishness is also evident in the futures market.”

So, what should you do now that the sentiment turned neutral? Not much. Keep your finger on the trigger, though. Things are about to get interesting.

Featured Image by Kristopher Roller on Unsplash - Charts by TradingView


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