Bitcoin price bottom signals flash as 'fear and greed' index matches March 2020 lows

cointelegraph.com:

Bitcoin (BTC) has fallen by over 67% in 2022 and is now wobbling between a tight trading range defined by $28,000 as interim support and $30,500 as interim resistance.

The selloff appears in the wake of the Federal Reserve's hawkish policy and the uncertainties in the crypto market led by Terra, an algorithmic stablecoin project whose native token LUNA fell by 99% earlier in the month.

Nonetheless, Bitcoin's decline has somewhat cooled down as May draws to a close, leaving speculators with the hope that the token is in the process of bottoming out. 

Something like this might play out for #Bitcoin. Notice the lower left corner we had a double bottom before getting a green wave. We’re currently sitting at the bottom of the wedge. We can go a little lower and form another double bottom before reversing. pic.twitter.com/feuzp5tiDZ

Interestingly, Bitcoin's Fear and Greed Index (F&G) also hints at the same scenario, notes Arcane Research in its latest weekly report.

In detail, Bitcoin's F&G reached the score 8 on May 17, indicating "extreme fear," a first since March 2020.

"We see that buying fear has previously been a profitable strategy when measuring median and average returns of previous extreme fear periods," Arcane wrote while citing the four instances wherein Bitcoin's F&G had dropped to 8.

Meanwhile, Ben Lilly, market researcher at Jarvis Labs, added that Bitcoin's F&G index falling below ten signals the extreme possibility of the market bottoming out. He also noted that buying Bitcoin when its F&G score is below 10 is a good short-term strategy, saying:

On the flip side, Arcane highlighted that not all lower F&G scores have guaranteed bullish retracement moves in the past; some preceded continued selloffs. For instance,