The recent Bitcoin and crypto market crash has seen prices plunge into the red across the board. As a result, sentiment among crypto investors has plunged rapidly and this has caused the Fear & Greed Index to plunge into the Extreme Fear territory. This suggests that investors are less likely to put money into the market, but it could also come with good news for the market. Fear & Greed Index Sitting At Extreme GreedThe Bitcoin Fear & Greed Index is one of the best indicators of telling how investors are feeling toward the market at any time. This index uses a scale of 1-100, representing sentiments ranging across Fear, Extreme Fear, Neutral, Greed, and Extreme Greed. Each of these can show how investors are feeling and could be a tell for where the Bitcoin price could be headed next from here.Usually, when the Fear & Greed Index is sitting on either extreme, it could mean that the price is about to swing in the opposite direction. So, for example, the Bitcoin Fear & Greed Index is in Extreme Greed could suggest that the price is about to fall, and vice versa.This trend would be positive for the Bitcoin price right now as the Fear & Greed Index has fallen into the Extreme Greed territory. As of Friday, the Fear & Greed Index had fallen as low as 22, which put it firmly in the Extreme Fear territory.Going by the Bitcoin price having a tendency to recover when the index is in the red, it could mean that the price is reaching a bottom. An example of this is when the Bitcoin Fear & Greed Index fell to 20 in August, before the crypto market seeing a quick rebound. If that happens here, the Bitcoin price could be on the verge of a recovery. Bitcoin Rebound Not Likely In SeptemberWhile the Fear & Greed Index sitting in the Extreme Fear territory could point towards a bottom, the rebound may not materialize for a while. This is because the month of September has historically been very bearish and expectations are that this month will not be different.Veteran analyst Benjamin Cowen outlined this in a post on X (formerly Twitter), revealing that this month is already on track with previous September months. So far, the Bitcoin price has already fallen 8.16%, and “If BTC closes the month at this price, it would be a fairly typical September,” the analyst explains.
The avg. return of #BTC in September is -6.3%
So far this month, BTC’s return is already -8.16%.
The only time in the last 5 years where the Sep. monthly return was worse than this was 2019 (-13.91%)
If BTC closes the month at this price, it would be a fairly typical September pic.twitter.com/bZ9cRIl9OU
— Benjamin Cowen (@intocryptoverse) September 6, 2024
However, the month of October is usually bullish, so if this trend continues, then September is likely to end in the red. But then when October rolls around, prices are expected to pick back up. More By This Author:Why is Bitcoin Price Crashing? Top Reasons Behind The 7% DropSolana Whale Holding $66,000,000 Sells Off 20% To Buy This Promising Ethereum Token At $0.01831Bitcoin Price Prediction: A Major Drop or a Massive Reversal? Here’s What Experts Say!
