Crypto Fear and Greed Sinking Towards July Levels

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  • The Crypto Fear and Greed Index is at its lowest rating for over four months
  • Bitcoin’s crash to $42,100 has sent sentiment tumbling
  • Last time the Crypto Fear and Greed Index was this low was in July 2021, just before its reversal

Sentiment in the fear and greed market is reaching levels last seen during the peak fear in the summer, with the Crypto Fear and Greed Index hitting 16 this morning. This is not far off the panic that set in when Bitcoin hit $30,000 in July and suggests that a reversal in market fortunes could be imminent. Bitcoin dropped to $42,100 on Friday night, with over $1 billion worth of liquidations occurring across exchanges, and the reaction since then hasn’t prompted any great hopes of a v-shaped recovery, leading the sentiment turning bearish.

Crypto Fear and Greed Index Lowest Since July Reversal

Bitcoin has lost $20,000 since hitting $69,000 on November 10, dropping to $42,100 on Friday night in another of the all-too-frequent liquidation cascade events, and although it has recovered to $48,000 its price action since then has not been altogether convincing. This has led to sentiment turning extremely bearish, which has been reflected in the Crypto Fear and Greed Index, which has been dropping steadily since hitting 71 last month:

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A rating of 16 represents the lowest the Crypto Fear and Greed Index has been since July 21 when it hit 10, which happens to be the very day that over two months’ worth of negative price action ended and the recovery to $69,000 began. As we have explored in the past, a rating lower than 20 suggests that a reversal is close (assuming a bear market is not in process), and anything lower represents a great chance to pick up some cheap coins before a probable bounce:

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