The crypto market and the Sentiment of the Bitcoin are still suffering the consequences of the collapse of the BTC on the day of yesterday. While the altcoins and Bitcoin are struggling to recover its price, analysts are still arguing about the reasons behind the sudden downfall of the criptomoneda, and especially its long-term effects. And that is, to be a market subject to the forces of supply and demand, the value of the Bitcoin has a high psychological component that must be taken into account to understand the direction that will continue the listing of the BTC. A widespread belief in the future decrease the price of the criptomoneda, would lead inevitably to their downfall, while the optimism about its future price, it would be an impetus for its growth. Therefore, it is of vital importance to pay attention to figures such as the Sentiment Index of the Market of Bitcoin, of which we provide information here on CriptoTendencia, and that would be a crucial indicator to understand the ongoing direction of the market in the immediate future.
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What is the Sentiment of Bitcoin?
The market sentiment is on a scale of 0 to 100 that is trying to quantify the emotions of the participants of the market of cryptocurrencies, where 0 would mean “extreme fear” and 100 “greed extreme”. Considering that human beings tend to over-react to events when it comes to finance, selling so thoughtless when we see red numbers, and buying when we are in the midst of a bullish rally, while the growth in prices is not sustainable, this figure can be very useful for taking investment decisions. The index would be composed of the following form: Volatility (25%), Time / Volume of the Market (25%), Social Networks (15%), Surveys (15%), Dominance (10%) and Trends (10%), all of which casts the figure that reflects the statistics. In the last few hours, and due to the instability prevailing in the markets after the collapse lived in the day of yesterday, there has been a fall in the index which is located at these times in 15 points, within the range of the extreme fear, thus reflecting a situation of panic among investors in the market. Sentiment of Bitcoin in the day of today, however, as well as this sharp drop in the index of market sentiment, it is a consequence of the collapse in the price of Bitcoin on the day of yesterday, the security experts at the time forecast a rapid recovery in the price of BTC, it makes us think that the index of sentiment will live a gradual recovery as the crypto market. The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.