Cryptocurrency investors continue to go through a very difficult process. Investors believed that the 200-week moving average would be the bottom for BTC. As of now, the lack of a strong reaction from this moving average has caused an increase in the level of fear of investors.
In March 2020, a major pandemic period was declared in the world. With the coming of the bans, there was a great collapse in the financial markets. While this crash was called the "COVID-19 2020 Crash", we saw that the Crypto Fear and Greed Index fell to 9 points during those crash days in the crypto market.
The index is currently in the “Extreme Fear” zone. The index, which was at similar levels last May, declined to 5/100 in August 2019. In this period when investors continue to be extremely afraid, the decline of Bitcoin (BTC) causes the chaos to grow. Interestingly, even when the Bitcoin (BTC) price was trading at $3,150, investors were more optimistic about the asset's performance.
This recession also broke the record. For the first time, the index has been in the "Extreme Fear" zone for more than six weeks in a row. One of the biggest catalysts of this decline was the Terra disaster. Terra's massive collapse damaged trust in the crypto industry.
In the future, the leading cryptocurrency must rise above the level of 28 thousand dollars so that Bitcoin investors can breathe a sigh of relief again. Passing this level will not only reduce the fear of Bitcoin (BTC) investors, but also make more people trust the sector.
The leading cryptocurrency Bitcoin (BTC), which started to rise as a result of the fear index falling below 25 points, may make upward moves if it moves according to this metric again in the future.