Crypto Industry news:
The BTC Fear & Greed Index (Bitcoin Fear & Greed Index) is currently at 27/100 which means fear. Previously, such values were recorded at the end of July.
The original index was developed by CNN Business and shows the score on a scale of 0 (extreme fear) to 100 (extreme greed). The index is based on seven indicators (including changes in stock prices, interest in junk bonds and market volatility). The cryptocurrency version of the index works very similarly, taking into account volatility, volume, social media, domination and trends (initially, surveys among internet users were also used).
According to many investors, if the index is dominated by fear, it can be treated as an argument in favor of making purchases. Of course, this also works the other way around and if the index indicates extreme greed, you may consider selling the asset.
Today's fear (27/100) of price drops contrasts with extreme greed (76/100) just a month ago. At the same time, investors who find this indicator significant often read lower values as a signal that Bitcoin's price is undervalued. The greater the greed, the greater the likelihood that the cryptocurrency price is overvalued, which sooner or later may lead to declines.
Technical Market Outlook
The BTC/USD pair has been seen approaching the 61% Fibonacci retracement located at $45,231. The momentum is now neutral, so if the bulls want to change to outlook for more positive, then the retracement level must be violated and the next technical resistance seen at the level of $46,371 broken. Otherwise, the bears might enter the market and cap the bounce. Any violation of the level of $38,261 would likely open the road to lower levels and the downwards momentum might increase then even more.
Weekly Pivot Points:
WR3 - $55,433
WR2 - $52,068
WR1 - $51,114
Weekly Pivot - $46,800
WS1 - $44,786
WS2 - $41,130
WS3 - $39,325
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $59,506. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).
The material has been provided by InstaForex Company - www.instaforex.com