Cryptocurrencies: the Index of greed and fear troubling investors
Today I decided to make the four-hour chart analysis of the stock market capitalization (Market Capitalization – MC). For me it is a common index of coins recorded on the website coinmarketcap.com.
Because at the time of writing, the share of bitcoin is 53,6%, we can say that doing the analysis pairs BTCUSD. Capitalization of $210 billion.
Cryptocurrency market 9 days in sideways range of 3.5%. Tuesday market looks pretty good. Rose bitcoin to the dollar, increased capitalization.
Stochastics turns down in the area of sales. Buyers cannot stop at the achieved level will be fixed the morning a success. Moreover, the index of fear and greed bitcoin (Fear & Greed Index) still points to the concern among crypto investors.
Fig. 1 Index of fear and greed
According to the latest data, the index is in the “red” zone and is 23 points. In October, the minimum value was recorded on 12 October at 13 points. It is here that bitcoin began to rise in price against the dollar.
According to the creators of the index, the value of the indicator “Extreme fear” (extreme fear) is a good buy signal. Buyers need a little more activity to pass the resistance area.
Fig. Graph 2 market capitalization
The resistance zone is between the values of 231,5 – 215,0. Support is at the level of 207,5. Mystical volatility is now at a low level over the last 10 bars it is at a minimum value of $5,919. The market is ready for new strong movements that should be expected in the coming days.
To began to increase the market capitalization on the stock exchange Bitfinex BTCUSD pair is required to overcome the level of $6840 for bitcoin.