BTC - Contrarian Indicator says now's the time to back up the truck!steemCreated with Sketch.

in bitcoin •  5 months ago  (edited)

One indicator may be flashing a buy signal for bitcoin.

It has long been said that the best way to make money in financial markets is to be fearful when others are greedy and to be greedy when others are fearful.

Another popular one is that you should be buying when there is blood in the streets.

Both of those may be especially true as they relate to cryptocurrency at the moment.

The blood in the streets one is much more accurate of the altcoin market than it is of bitcoin though.

However, that first one, "being greedy when others are fearful", may apply to all of crypto.

A while back Fundstrat came up the the Misery Index as it relates to bitcoin.

This index is very similar to a Fear and Greed index.

I am not sure all the inputs that go into it, but it tends to read the sentiment around bitcoin and when that sentiment is very poor it tends to show a "fear" reading.

When things are going very well , it tends to show a "greed" reading.

What do you think it is showing right now?

Take a look...


That's right, as of right now bitcoin is showing extreme fear on the index.

This is a level that hasn't been seen since December of last year.

At a time when bitcoin was hovering around $3k and shortly after ended up going on a run that took prices up over 4x.

A similar move right now would take prices to roughly $40k.

Will history repeat?

We shall see...

Stay informed my friends.

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Do you have a link the realtime BTC Fearometer?

That works.
Thank you.

You got it.

For whatever reason, I prefer altcoins here as they could be what the whole market needs for a new trend.

Posted using Partiko iOS

I like both. I think bitcoin makes new highs before the end of the year and I also think we are near the lows for altcoins. Though that may seem to contradict the way they have been trading inversely of each other... well more like altcoins just go down whether bitcoin goes up or down.

Nice post. I feel like some alts are about to take off. I am still learning and pretty new though. I am just diversifying and trying to build up my portfolio as I can. I do not want to miss out again. I set up a laptop to mine way back. I first found out about bitcoin in 2010. I checked it about once a year and at some point had set up the laptop with a miner. I messed up though and did not do something right. I did not stay up on it and thought I could set it up to run at all times or something. Now I got hooked and all I do is work and then learn more. I really want to capitalize at some point so I can get over knowing about bitcoin so early and not having any.

Posted using Partiko Android

Yes I think alts are getting close as well.

maybe the fear is justified?? you never know :-)

I might not be backing up a truck but I am not stopping my dollar (CHF in my case) cost averaging in

Fear is always justified. It often offers opportunities in markets though. The same goes for greed. Prices tend to overshoot to the upside and downside before finding some equilibrium in the middle. Those extremes can offer good spots for the astute trader. :)

Do you know what that fear indicator is based off?

It looks like this:

volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%) and Bitcoin (BTC) dominance (10%)

More about it can be seen here:

Good post

Posted using Partiko Android


For your situational awareness

Posted using Partiko Android

I see.

This is an interesting find of course no one can really be sure what would be the price movement of Bitcoin but having tools like this really helps us make a more informed decision.

It's been pretty accurate at timing tops and bottoms when it is it at extreme levels.

Really quite interesting metric. This should be a good indicator to the most probably direction of bitcoin price action.

It can help, that is for sure.