The crypto market is in full fledged fear for the longest phase in more than a year, coinciding with a massive Bitcoin drop of more than 50%.
The once trending cryptocurrency has yet to recover, leaving the market and participants in a state of extreme fear. But past data shows, fear is often a good thing for Bitcoin, and helps the asset find support and at least a short term bottom.
Bottom Things: Bitcoin Price Action Perfectly Correlates To Fear And Greed
Fear is one hell of an emotion and can make even so-called “diamond hand” Bitcoin holders panic sell. No emotion comes close to driving humans toward acting irrationally more so than fear, other than greed.
Greed can be even worse, blinding investors and traders to what’s going on around them. When money is easy, it is difficult to click that sell button and secure profit knowing that prices could rage on much higher.
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