Crypto Fear & Greed Index Goes from “Extreme Greed” to “Extreme Fear” Under a Week
- Bitcoin Price, for now, is neutral
- House Minority Leader Kevin McCarthy says “I like Bitcoin”
- US Treasury Secretary Steven Mnuchin’ remarks’ timing couldn't have been better, says eToro senior analyst, Mati Greenspan
After going to $9,855 on the weekend, Bitcoin managed to climb above $11,000. However, we are back below it at $10,500 with 24 hours loss of 0.88 percent, at the time of writing.
Bitcoin currently, lacks the trading volume to back up a strong upward move as the ten exchanges with the real volume registered $1.85 billion.
Bitcoin Price, for now, is neutral.
Crypto trader and investor Josh Rager says resistance is at $11,153 and bullish w/ close above. But completely bull biased if weekly closes above $11,469.
The price he says is neutral until it breaks above these levels. While, another lower-low on the daily close below $10,191, especially if the price hits a new low under $9,650, he will be bear biased.
Interestingly, the volatility in the market is doing a number on the psychology of the people.
In a matter of four days, the Crypto Fear & Greed Index went from “extreme greed” to “extreme fear.”
The index ranges from 0 to 100, where a value of 0 represents “Extreme Fear” while a value of 100 means “Extreme Greed”.
On June 27, the value was 92 and on July 10, the reading was 83 that crashed to 16 on July 15 and today is at 34.
“Investors will be Thrilled to Take a bit of Risk on this New Asset Class”
The push to the BTC/USD price has been the reaction to the Secretary of the United States Treasury Steven Mnuchin’s remarks on the Bitcoin and cryptocurrencies.
Speaking from the White House, Mnuchin said cryptos are exploited to facilitate billions of dollars in illicit activity, calling it a “matter of national security.”
However, as Mati Greenspan, senior analyst at eToro notes, throughout the speech bitcoin surged by 5%.
The attack, Greenspan wrote was directed “specifically” towards Libra and the possibility of it being used to bypass regulations.
“On the other hand, he did clarify that using bitcoin for speculative purposes (i.e. a store of value), especially through regulated entities is completely fine.”
The timing Greenspan says couldn't have been better with stock markets looking “overvalued,” bonds markets giving extremely low yields and crypto-assets outperform the rest of the markets.
This means, “investors will be thrilled to take a bit of risk on this new asset class.”
Nice push from bitcoin's psychological support.
This extremely pleasant bounce is an excellent confirmation of the range from 10k to 13k.
Past performance is not an indication of future results. This is not trading advice. pic.twitter.com/wzWtKrWdLc
— Mati Greenspan (@MatiGreenspan) July 15, 2019
Meanwhile, today, House Minority Leader Kevin McCarth told CNBC, “I like Bitcoin” and its security and decentralization nature.