The Fear and Greed cryptocurrency index is a complex indicator that tracks volatility, market trade volume, social media discussions, market dominance and Google trends.

The week of extreme fear

December 2021, the Bitcoin (BTC) “Fear and Greed” index hit 16/100 for the first time in almost 5 months. Then it rose a little, but on Saturday it leveled off at this extreme low.

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As a result, Bitcoin (BTC) was unable to leave the waters of “Extreme Fear” for an entire week. It took only 28 days for the index to tumble from its 8-month high at 84/100.

From a short-term perspective, analysts are certain that Bitcoin’s “Fear and Greed” index has fallen to extremely low levels as Bitcoin failed to hold above $ 50,000.

The last time Bitcoin’s “Fear and Greed” index was this weak was when the crypto king traded below $ 30,000 in late July 2021, after a massive drop in the second quarter of 2021.

ETH / BTC “slippery price” is inevitable?

The net capitalization of the crypto market fell below $ 2.5 trillion for the first time since October 15. On November 9-10, she managed to stay above $ 3 trillion in two days, an unprecedented record.

Bitcoin’s dominance (BTC) (BTC.D), the ratio between Bitcoin’s market capitalization and the rest of the crypto market, is closer to its seven-month low.

Even if Ethereum (ETH) remained unchanged, it fared slightly better than Bitcoin (BTC). The ETH / BTC ratio has seen an impressive rally towards the 44-month high.

Usually a combination of these trends points to an imminent “altcoin season”, a period in which the most important altcoins perform significantly better than the orange coin.

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