The Fear & Greed Index shows that Bitcoin price is undervalued

Recent data from the Crypto Fear & Greed Index shows the crypto bitcoin market is going through a period of investor fear with a 3-month low of 27/100.

By using the leading crypto asset Bitcoin (BTC) as a proxy for the market, the experienced technical analysis tool informs crypto traders worldwide about the current mood, flow and development of the market.

This data can then – in accordance with other analytical strategies – be used to determine the possibility of a future rally or correction and ultimately whether or not the price level represents a buy or sell opportunity.

A lower number of 100 indicates a shift towards extreme market fear and BTC could be undervalued, while a higher number represents extreme market greed and a possible price and may be overvalued, anticipating a future decline.

After Bitcoin fell 10.4% this week to $ 43,313, the index returned a score of 27. The last time a number was printed at or below this level was almost 3 years ago today, July 26th Months.

The index made a 1-year low of 10 on July 21, followed by a parabolic rally to a 5-month high of 79. Often printing double digits in late August and early September.

Related: Bitcoin Soars To $ 43,000 Ahead Of New Crypto Comments From SEC Chairman Gensler

Reddit user u / _DEDSEC_ adapted the popular trading mantra “buy the rumor, sell the news” and commented that traders should “buy fear, sell greed”.