‘Extreme Fear’ Is Back but Bitcoin’s Price Recovery Depends on it: Santiment

Bitcoin dipped to a four-week low on Friday at $65,500 after it was rejected at $72,000 a few days earlier, which pushed the overall market sentiment back to ‘extreme fear’ territory. However, the analysts from Santiment believe this could be the precise push BTC needs to stage a notable recovery.

Key takeaways

Quick scan — what you need to know:

• Bitcoin dipped to a four-week low on Friday at $65,500 after it was rejected at $72,000 a few days earlier, which pushed the overall market sentiment back to ‘extreme fear’ territory.
• However, the analysts from Santiment believe this could be the precise push BTC needs to stage a notable recovery.
• Fear Dominates CryptoPotato has repeatedly reported over the past few months that the Bitcoin Fear and Greed Index has been predominantly in an ‘extreme fear’ state, which was quite…
• However, there was some relief on the matter in the last 10 days or so, when BTC tapped $76,000 on March 18 and $72,000 a week later.

Background

What led here, in plain terms:

• Nevertheless, the subsequent rejection drove it south once again, dropping to $65,500 on Friday for the first time since the beginning of the month.
• This meant that BTC, which was once the top-performing non-oil asset after the war against Iran began, had erased almost all gains charted within that period.
• The Index followed suit, as it dropped back down to ‘extreme levels,’ currently showing 9.
• According to Santiment, this could actually be a blessing in disguise.

Why it matters

Why readers and decision-makers should care:

• In fact, it had five consecutive months in the green, with four of them charting double-digit gains.
• May 2019 stands out as its best-performing month since then, with a massive 52% surge.
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