As a seasoned analyst with years of market observation under my belt, I can confidently say that the recent downturn in the crypto market comes as no surprise to me. Having witnessed numerous bull and bear cycles, I’ve learned to read between the lines of the Crypto Fear & Greed Index.
The Crypto Fear & Greed Index, the widely used gauge of investor sentiment, has slumped back into the negative territory.
The index currently shows 30 points out of 100 after the most recent update.
At the moment, based on information from CoinGecko, the biggest digital currency is being transacted at approximately $59,234.
Over the last day, approximately $320.86 million in cryptocurrency has been forcibly sold due to market movements, with most of these instances being from long positions (positions where one expects the price to rise).
Was the market too bullish?
According to data from analytics provider Santiment, the recent dip occurred following a surge in long positions being bought on platforms such as dYdX.
To put it another way, there hasn’t been this level of enthusiasm for buying Bitcoin since March – the very month when it reached its highest point so far.
The analysis platform attributes the latest price plunge to this over-exuberance.
Liquidations happened quickly due to traders being extremely greedy.
It’s observed that traders often close their market positions when funding rates become excessively high or low, indicating a shift in the market’s sentiment.
Read More
- ENA PREDICTION. ENA cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- Red Dead Redemption: Undead Nightmare – Where To Find Sasquatch
- USD COP PREDICTION
- USD ZAR PREDICTION
- TARA/USD
2024-08-28 12:09