Bitcoin Sentiment Slides Back Into Extreme Fear Just Days After Recovery

Data shows the Bitcoin Fear & Greed Index has dropped back deep into the extreme fear zone, signaling an effective reset of the market mood.

To represent the sentiment, it makes use of a numerical scale running from zero to one hundred. All values below 47 correspond to a net sentiment of fear, while those above 53 suggest the dominance of greed. Naturally, the values between these two cutoffs indicate a neutral mentality.

Besides these three zones, there are also two extreme regions known as the extreme fear (25 and under) and extreme greed (above 75). As the latest value of the Bitcoin Fear & Greed Index indicates, sentiment currently lies in one of these extreme regions.

While the market is currently extremely fearful, it wasn’t the case just a few days ago; BTC’s rally above $75,000 meant that the market mood surged into the fear zone after being stuck in the extreme fear region for a month and a half.

The recovery proved only temporary for the cryptocurrency, though, as its price has now retraced all the way back below $69,000. This pullback could be why the Fear & Greed Index has degraded from a value of 28 to a very low one of 8 within the matter of six days.

So far in the current cycle, the lowest that the indicator has gone is 5. Thus, at the latest value of 8, Bitcoin market sentiment is just three points away from peak despair.

At the time of writing, Bitcoin is floating around $68,400, down over 6.5% in the last seven days.