An index tracking trepidation among crypto traders indicates Bitcoin may have more room to fall.
The Fear & Greed Index from Alternative.me measures market volatility, social media and surveys to determine the overall sentiment among crypto traders.
The index is now firmly in the fear zone at 38, indicating that investors are worried the price may drop further.
Run by the developers and creators of Strawpoll.com and Thundercheck.org, the index shows that when traders are fearful, a market correction is typically ongoing.
The needle is designed to shift into “extreme fear” when a significant correction has taken place, indicating that investors are overly worried and that a buying opportunity could be at hand.
As for the altcoin market, crypto analyst and winner of CME Group’s annual trading competition in 2016 says he thinks it may have hit a bottom.
In his latest tweet, Eric Choe says Litecoin’s chart is a reflection of the altcoin market at large. He thinks LTC may hit a floor around $55 before the start of a rebound.
“This could honestly be the bottom of the alt-market end of 2019. A lot of charts look like this. Hold the floor!”
At time of publishing, LTC is down 5.92% at $56.70, according to CoinMarketCap.
Bitcoin is down 3.81% at $8,308, Ethereum is down 3.50% at $180.07, XRP is down 4.80% at $0.2547 and Bitcoin Cash is down 8.20% at $249.43.