Is the Crypto Market Going Bearish Again?

While the crypto market is showing red numbers, the crypto community is once again showing uncertainty. This is not new as every time the market dips, the crypto community fears their investments dropping.

Some seasoned traders are wary of the current situation the crypto market is enduring. Still, they are convinced of the capabilities of the digital assets.

Looking at this, Lark Davis, a crypto analyst, has tweeted a chart from crypto Fear and Greed. Note that the Fear and Greed Index is a chart that marks investors’ sentiments towards the market, unveiling whether the market is bullish or bearish. In addition, the index is based on two contradicting emotions, fear and greed.

Is the Crypto Market Going Bearish Again?
Fear and Greed | Image: Lark Davis

The chart shows that crypto market behavior is sensitive as traders and investors are selling their assets in an irrational reaction to the downtrend. This downtrend is the result of China's latest action to crackdown crypto industry once again.

Last week, China listed crypto trading as illegal, saying that it is “not protected by law.” As a result of this news, crypto exchanges are gradually moving out to other countries.

But of course, the viewpoint is distinctive when it comes to traders, crypto believers, and long-time holders. Lark Davis' Twitter post points to an interesting thread.

Especially, Lark Davis points out that fear is sweeping across the crypto industry, saying that cared money, don't make money. To clarify, Davis is highlighting the fact that some crypto investors panic and sell their digital assets. As matter of fact, it results in a market downturn or dip.

Many replies to the tweet. Some also agreed with the crypto analyst. An account said, "true.. scared money, don't make money, but smart money makes big big money, we are clearly in downtrend." Another replied that last time the market was at these levels of fear, BTC was 28-30k. So, it can surely drop there again, but that's still a bullish sentiment for the long-term.