A multi-day ‘excessive worry’ studying in a widely-followed sentiment index might be indicative of bitcoin costs setting a backside earlier than transferring larger within the coming weeks — with a beforehand comparable setup previous a 200% rise in BTC.
The Worry and Greed Index, which measures investor feelings in markets like bitcoin, starting from 0 (lowest sentiment) to 100 (highest sentiment), has proven an prolonged ‘excessive worry’ studying up to now a number of days as costs whipsawed between the $83,000 and $95,000 ranges.
Bitcoin Worry & Greed Index: EXTREME FEAR!
For the primary time since September 2024—when BTC was at $53K—we’re seeing sustained Excessive Worry out there.
Final time this occurred? $BTC 2x’d within the subsequent 3 months.
Will historical past repeat itself? pic.twitter.com/Qtjrfn2j1N
— Kronos Analysis 🟠 (@KronosResearch) March 5, 2025
The index helps determine whether or not traders are too scared (potential shopping for alternative) or too grasping (attainable market correction), tending to behave as a contrarian indicator within the brief time period. It’s primarily based on worth volatility and momentum, social media sentiment, Google developments knowledge and bitcoin’s total market share.
“Bitcoin’s plunge into ‘Excessive Worry’ on the Worry & Greed Index, its first since September 2024, when BTC traded at $53K, echoes a pivotal historic low,” Vincent Liu, CIO at buying and selling agency Kronos Analysis, informed CoinDesk in a Telegram message. “Again then, Bitcoin’s worth doubled over the following three months, hinting at a possible shopping for alternative for savvy traders.”
“Amid right this moment’s market volatility, fueled by commerce tariffs and broader macroeconomic uncertainties, this second may emerge as a golden entry level, offered international commerce tensions ease and total financial sentiment strengthens,” Liu added.
Bitcoin and several other main tokens, together with Cardano’s ADA, Solana’s SOL and xrp (XRP), surged Sunday following President Trump’s announcement of a U.S. crypto strategic reserve.
However the preliminary pleasure was short-lived resulting from profit-taking amid the dearth of concrete plans and a risk-off temper in broader fairness markets.
Trump’s tariff bulletins on Canada, Mexico, and China additional impacted markets, and merchants at the moment are awaiting extra readability from the upcoming White Home Crypto Summit for cues on future positioning.