Today, fear, uncertainty and suspicion (FUD) in the bitcoin market are obvious. But this should not be the case, because such large fluctuations are nothing new and will happen again and again. However, the panic continues, as traders are worried about further losses and quickly close their positions. But what about cryptocurrency whales?
Bitcoin panic index fell to a new low in 2019
According to Alternative.me, the BTC panic index, which measures fear and greed, fell to its lowest point since the 2018 cryptocurrency winter. The index fell to a low of 245 days, 13 and was marked as "extremely fearful."
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(Bitcoin Panic & Greed Index, picture taken from: Alternative.me )
The last time this figure fell to such a low level was in mid-December last year, when Bitcoin prices fell to $3,200. This index ranges from 0 to 100. The lower the number, the “extreme fear” and the higher the “greed”.
The decline in this index is related to Bitcoin's fall below $10,000, which is the fourth time since the bitcoin price rebounded that it has fallen below the 4-digit level. The platform's index consists of five types of data: volatility, market momentum/volume, social media, surveys, market capitalization, and trends.
Larry Cermak, research director at The Block, observed that two-thirds of Coinbase users with a large amount of bitcoin chose to buy in the past 24 hours.
“Interestingly, according to Coinbase, 67% of the customers who hold a large number of BTCs (top 10%) chose to buy instead of sell in the past 24 hours.”
Similarly, he found that 88% of Coinbase's XRP owners had bought in the past 24 hours. Considering that the price of XRP has fallen to its lowest level in the past few hours in the past few hours, this will indicate that they may be bottoming out.
Bitcoin returns to $10,000
At least for Bitcoin, the recovery has begun. According to data from Tradingview.com, BTC returned to 4 digits in just 7 hours, again exceeding $10,000. The encryption market has changed so fast that most people miss out on the three-digit opportunity.
However, there is a good chance that there will be another chance, because some analysts believe that bitcoin prices will fall further and fall below $9,000. The price action in the short term will be crucial for the next step of the BTC. If you choose to buy more and more whales, then the price will soon pick up. Unfortunately, this is not the case for competitive currencies.