Absolutely, if there is fear in the crypto market, everybody jumps to BTC, the sentiment for BTC improves and its price increases as everybody is buying it.
I guess in this index, extreme fear is 0, and total confidence is 100. So I would expect BTC price to increase every time we reach lower values (closer to 0) on the Fear index. That correlation doesn’t seem to work at all between Feb 18 and Aug 18 though. Weird. Probably due to the 2018 crash? Or maybe when the confidence is high (Fear is low), every crypto is bought, including BTC, boosting its price as well…
I certainly would like to see a more detailed explanation of this chart and the correlation between the Fear Index and Bitcoin Price.
Thanks for adding this chart @ponponwei , very interesting.