Investors are not ready to play Trick or Treat with market
The recovery in the cryptocurrency market, which gave investors double-digit gains, did not change majority sentiment, largely due to the size of the losses that preceded the recovery of the digital asset and some worrying 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 huge potential for a Bitcoin reversal on the market. Such a prediction is based on the difference between the price of the indicator and the asset. Historically, such signals have run correctly more than 60% of the times but rarely.
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 horror
Historically, Halloween has not been a good time for the cryptocurrency market, as increased spending by retail investors usually causes a large outflow from the industry. Despite a massive uptick in 2021, the end of October was a rough period for the industry, leaving investors with double-digit losses.
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 stands at a value of 30, with “fear” prevalent among the majority of retail cryptocurrency traders and investors.
