By Alicia Maher
Several questions are bugging the minds of many crypto enthusiasts following the persistent downtrend currently happening across the crypto market.
It Has Remained So For 30 Consecutive Days
This continued downturn has caused the Fear and Greed index to keep pointing to extreme Fear over the past 30 days. The fear and greed index (FGI) measures the general market sentiment for a specific period with a gradation from zero to 100 (extreme Fear to extreme greed).
Keep in mind that the indicator fluctuates between the two extremes at any time. Many traders and analysts use this index to caution themselves from making emotional trading decisions.
The Extreme Fear Now And What To Expect Soon
The FGI’s signal over the past 30 days has been extreme Fear. An Arcane research report stated that the start of summer was the last time the index signaled extreme Fear, and that time it remained so for almost 60 days. According to the report, BTC usually performs better than the altcoins during this intense sell-off period. The report further stated that the same cycle is repeating itself during this downtrend as BTC has performed better than all other digital assets.
The Arcane research report predicts that the cycle support band will be crucial for the next trend direction. “BTC’s close beneath the market support band over the past 14 days has a crucial meaning. The consolidation phase would likely be longer than usual before any change in the trend’s direction. Again, no price breakout should be expected for now unless BTC closes the week above the cycle support band.”
However, the volatility of the crypto market means anything is possible and can happen at any time. For instance, a similar situation described by the Arcane research occurred about two months ago. But the general market sentiment did complete a u-turn within two weeks and turned the FGI from extreme Fear to extreme greed.
CoinMarketCap Glitch: Crypto Prices Down By 98%
Popular crypto price tracking site, CoinMarketCap, is experiencing a severe glitch. The prices of all the cryptocurrencies on the site have gone down by almost 98%, while their peak prices were sky-high. Many traders noticed and notified the public about the errors in the early hours of December 15.
But as of this writing, the glitch has been rectified, and all prices are now regular again. However, the peak prices of these digital assets are yet to be remedied. For instance, BTC’s ATH is still shown as $8.6m, which is in stark contrast to the actual peak price of $69k, which was set some months ago.
Crypto retail traders often use sites like CoinMarketCap to monitor crypto prices. The traders make their market data comparisons as often needed. These sites are trusted because traders know these sites have made several comparisons from thousands of crypto exchanges before publishing the crypto prices on their sites.
But the price change happening right now proves that anything tech remains infallible. It is no wonder that some crypto enthusiasts suggest that traders should rely on CoinMarketCap and its likes for crypto price data.