Bitcoin sentiment in ‘wild’ divergence from actuality as $53K BTC triggers ‘excessive concern’

Bitcoin (BTC) has stabilized at round $55,000 after dropping by $6,000 in a single day — however crypto market sentiment continues to be in shock.

In line with the Crypto Fear & Greed Index, as of Nov. 27, feelings are actually on the most fearful since late September.

Crypto sentiment dives into “excessive concern”

Worry & Greed, which takes a basket of things to compute a standardized sentiment rating for crypto markets from 1-100, at present sits at 21.

Friday took its toll on the metric, the rating greater than halving in 24 hours from its earlier place of 47.

These two readings correspond to sentiment going from “impartial” to “excessive concern” — lacking out the “concern” zone altogether.

Crypto Worry & Greed Index. Supply:

Whereas an expected reaction, the upheaval obvious the emotional state of market members is changing into a supply of amusement for some acquainted names.

Investor and entrepreneur Alistair Milne famous that “excessive concern” is hardly an applicable response to BTC/USD buying and selling at $54,000. Certainly, the final time that the Bitcoin spot value was at these ranges in mid-October, Worry & Greed measured 78 — “excessive greed” territory.

“This a lot concern and we’re at $54k. Wild,” he summarized

On Sept. 30, when the Index final hit 21/100, BTC/USD traded at round $43,800 on Bitstamp.

BTC/USD 1-day candle chart (Bitstamp). Supply: TradingView

Funding charges see in a single day reset

As Cointelegraph reported, the most recent and deepest section of the BTC value correction got here as dealer habits on exchanges stayed curiously optimistic.

Funding rates, being constructive regardless of Friday’s transfer, confirmed that market expectations had been for a swift restoration.

Associated: Bitcoin reverses ‘bear market’ at $53.5K as Pfizer gains on fresh panic over coronavirus ‘Nu’ variant

On the time of writing on Saturday, nonetheless, evidently the journey to lows of $53,500 was sufficient to reset the temper — funding charges are actually again to regular and present no bullish bias.

Bitcoin funding charges chart. Supply: Coinglass

As famous by analytics agency Delphi Digital this week, nonetheless, funding stays decrease relative to the primary half of 2021 — and this may occasionally sign an absence of total path.

“Funding charges proceed to be low on the futures markets. This may very well be an indication that the shorter-term leveraged merchants are nonetheless undecided directionally,” researchers told Twitter followers.

“Wanting again at first of the 12 months, the bullish run-up has been accompanied by a considerably increased funding fee.”