Bitcoin sentiment hits historic low based on Crypto Fear and Greed Index

The Crypto Fear and Greed Index reached its lowest value in history.

As Bitcoin hovers below $10,000, investors fear the potential for further decline could jeopardize the idea that a new bull market materialized.

Even the CEO of Binance Changpeng Zhao, told his followers on Twitter to "Slap themselves" if they had sold Bitcoin under $10,000.

Despite the bullishness perceived across the market just a few days ago, Bitcoin plummeted 11 percent turning the market sentiment into "Extreme fear," according to the Crypto Fear and Greed Index.

The last time this technical index hit such a low value was in Feb. 6, 2018, when it was at 8.

In Dec. 15, 2018, as Bitcoin hit a low of $3,130, the CFGI was at a value of 10.

A combination of the buy signal given by the Crypto Fear and Greed Index with a spike in volume could be used as confirmation of the pattern's break out direction.

Thus, if Bitcoin moves above the 23.6 percent Fibonacci retracement area it could rise up to $14,400.

A move below the 38.2 percent Fibonacci retracement zone could invalidate the bullish signal presented by the CFGI. If this were to happen, Bitcoin could breakdown of the symmetrical triangle to test the 65 percent Fibonacci retracement level, which is sitting around $6,890.

Whether the index will predict Bitcoin's next move this time around is anybody's guess.