Data shows the crypto market has been fearful for 171 days already, will the streak continue in October and reach 200 days? Crypto Fear And Greed Index Points At An Extremely Fearful Market As per the latest weekly report from Arcane Research, the crypto market has been continuing to show a fear sentiment since April of this year. The “fear and greed index” is an indicator that measures the general sentiment among investors in the cryptocurrency market. For representing the sentiment, the metric makes use of a numeric scale that runs from zero to hundred. All values of the index greater than 50 imply the market is greedy, while those below the threshold suggest fearful investors. In these main sentiments, there are two zones that have historically been particularly important for prices of coins like Bitcoin. These are the “extreme greed” and “extreme fear” regions and they occur at values greater than 75 and below 25, respectively. Related Reading: Get Forked: Ethereum PoW Forks Fall 66% In Just Days The relevance of the extreme sentiments is that tops have usually taken place in the former type of periods, while bottoms have formed in the latter ones. Now, here is a chart that shows the trend in the crypto fear and greed index over the last year: The value of the metric seems to have gone down in recent days | Source: Arcane Research’s The Weekly Update – Week 37, 2022 As you can see in the above graph, the crypto fear and greed index recently observed a small surge as the Ethereum merge came around, but as soon as the investors realized it was a sell-the-news event, the sentiment dropped back down sharply. Two days ago, when the report came out, the indicator had a value of 23, which would suggest extremely fearful mentality. Since then, it hasn’t budged much as today’s value is still 22. Related Reading: Bitcoin Falls Under High Selling Pressure, What Will Shoot Its Price? The crypto market has been in a state of fear since the month of April, making it a continuous run of such sentiment for 171 days now. Back during the relief rally in August, the indicator came the closest to escaping from this region and ending what has become the longest streak of fear in the history of the index. However, before investors could embrace greed, the rally ended and the sentiment immediately plunged down. Currently, it’s unclear when the run would finally come to an end. If it keeps on and runs through October, crypto investors would have observed 200 days of fear. BTC Price At the time of writing, Bitcoin’s price floats around $19.2k, down 5% in the last seven days. Over the past month, the crypto has lost 10% in value. Looks like the price of the coin has been mostly moving sideways in the last few days | Source: BTCUSD on TradingView Featured image from Thought Catalog on Unsplash.com, charts from TradingView.com, Arcane Research
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The general crypto market has seen some positive price rally in 24 hours. Many of the coins are trading in greens, including Ethereum with its 7.86% gains and Bitcoin with a 2.89% surge. Other altcoins such as PancakeSwap CAKE, SHIB, Ethereum Classic ETC, and Tether USDT are also in the greens. For instance, CAKE gained 3.6%, SHIB soared by 1.56%, while ETC recorded a good 8.38 price growth. Related Reading: Central Bank Chairs Push Bitcoin Price To The Downside, Will BTC Bounce Again? Currently, the ETH price is at $1,635 while the BTC price stands at $19304. Before the close of the market today, September 8, we might see more bullish support for the top cryptos and the altcoins too. But the recent price increase in Ether has spiked liquidations. Ethereum Price Growth Increases Liquidations Due to the price increase seen in ETH price, many of its leveraged positions are being liquidated. According to Coinglass, the total liquidations have reached close to $200 million in 24 hours. ETH positions were more than $110 million out of the total liquidated positions. Notably, the largest order was a BTCUSD perpetual position worth $2 million. This liquidation took place on Bybit. Other exchanges with high liquidations figures include OKEx, Binance, ByBit, FTX, CoinEX, Huobi, Bitmex, etc. OKEX recorded up to 75% short positions liquidations amounting to $4.28 million, while Binance followed closely with $3.36 million in total liquidations. ByBit, FTX, CoinEX, Huobi and Bitmex recorded $3.16M, $1.39M, $447.91K, $321.57K and 20.73K. What Could Be Pushing Liquidations The Ethereum community is set to embrace the upcoming upgrade to a proof of stake mechanism. Even as the Merge approaches, the coin price keeps fluctuating. There is a more positive outlook today, but the past days have not been too convincing. For instance, the ETH price fluctuated between $1533 and $1577 from August 30 to September 5. It saw a little push above that mark on September 6, but that was the day of the Bellatrix upgrade. After the rally, it pulled back to $1560 the next day, September 7 but closed the market with $1629. With these price fluctuations, it’s not surprising that liquidations are currently pushing their limits in the markets. Most traders are not able to hold their positions, and the exchanges are closing them. A Brief on Liquidation Liquidation occurs when crypto exchanges close a trader’s leveraged position due to losses in the initial margin. This is one reason traders are advised to go easy on leverage. If the value of the crypto asset plummets, they could lose their own little investment capital. Given the recent uncertainty in crypto prices, including Ethereum, it’s obvious that these leveraged positions are no longer sustainable. Some traders that can be spared from this trend are those who placed a “stop order” on their positions. Related Reading: Fantom Keeps Close Eye On Possible 20% Slide This Month But the likelihood of losing their funds during this period is very high for those who didn’t. Unless, of course, the Merge reverses the price trend. Featured image from Pixabay and chart from TradingView.com
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