Fear Prevails on Crypto Market as Investors Wait for Halloween Sale, Here’s Why

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The recovery on the cryptocurrency market that brought investors double digit gains did not change the sentiment of the majority, and the main reason is the size of the loss that digital assets took prior to the recovery and some worrisome signals provided by technical indicators.

RSI shows correction signs

A large part of the fear on the market is caused by the behavior of one of the most popular indicators used by day traders and short-term investors. The Relative Strength Index is extremely useful when the goal is to determine the stability of a rally.

Unfortunately, the indicator shows a large probability of Bitcoin’s reversal on the market. Such a prediction is based on the divergence between the indicator and the asset’s price. Historically, such signals play out correctly more than 60% of the time but rarely occur.

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With indicators flashing red, some investors remain fearful and avoid providing inflows to digital assets, which is being confirmed by the Fear and Greed index.

Halloween brings spookiness

Historically, Halloween has not been a good time for the cryptocurrency market, as increased spending of retail investors usually causes large outflows from the industry. Despite the massive bullrun in 2021, the end of October was a rough period for the industry, causing double digit losses for investors.

Feer and Greed
Source: Alternative 

With the cryptocurrency market showing poor performance prior to and on Halloween, investors abstain from investing in it as actively as they would under different circumstances.

At press time, the Fear and Greed index is at a value of 30, with “Fear” prevailing among the majority of retail cryptocurrency traders and investors.

Source: https://u.today/fear-prevails-on-crypto-market-as-investors-wait-for-halloween-sale-heres-why