The fact that Bitcoin surpassed the $ 50,000 resistance level, along with the recorded value increases, significantly reduced the fear and anxiety in the market, according to current data.
The leading cryptocurrency Bitcoin, which broke down important support levels with the downward price movements it has recorded recently, experienced high losses in value. In this process, Bitcoin pinned the price levels of $ 42,000 and continued its downward trend. The leading cryptocurrency, which was consolidated at the price levels of $ 48,000 for a while, rose to the price levels of $ 51,200 with the bullish movements that it started in the early hours of Tuesday, December 7th.
Bitcoin Fear and Greed Index
The Bitcoin Fear and Greed Index aims to measure the sentiment of investors in the cryptocurrency market. The index scores between 0 and 100. A score of zero represents fear and anxiety in the market, while a score of 100 represents greed in the market. The fact that the current pointer in the index approaches 0 points indicates that investors are expecting more declines and that the anxiety in the market has increased. Approaching a hundred points indicates a positive expectation in the market.
The Bitcoin Fear and Greed Index fell from the green zone to the red zone after the depreciation of the leading cryptocurrency. The decline of Bitcoin to $ 42,000 significantly increased the anxiety among investors. During this period, the index was in the red zone with 16 points.
However, with Bitcoin gaining an upward momentum on December 7 and surpassing the $50,000 resistance level, the index started to rise. After this increase in the leading cryptocurrency, the fear and anxiety in the market decreased somewhat. Although the index is still in the red zone, it rose from 16 to 25 in 1 hour and significantly approached the neutral zone.
Increase in Long Positions
With the depreciation in Bitcoin, the amount of short positions on cryptocurrency exchanges increased significantly. Investors entered with an expectation that the decreases in the market would continue. However, this expectation was somewhat reversed when the $50,000 resistance level was overcome. According to Coinglass data, the ratio of long positions to short positions has increased significantly since the early hours of December 7.
Although the current data and indices do not show that the crypto money market will move upwards, the fact that investors expect to rise rather than fall and take positions in this direction reveals that the fear and anxiety in the market have decreased significantly.