Recent data from the Crypto Fear & Greed Index indicates that the cryptocurrency market is experiencing a period of investor fear with a three-month low score of 27 out of 100.

By utilizing leading cryptocurrency asset Bitcoin 

BTC

$20,830

 as the markets representative, the seasoned technical analysis tool informs cryptocurrency traders worldwide on the current emotional sentiment and bias of the market.

This data can be then used — in accordance with other analytical strategies — to determine the potential of a future surge or correction, and ultimately, whether price levels represent an opportunity to buy or sell the market.

A lower number out of 100 indicates a shift towards extreme market fear and that BTC may be undervalued, whilst a higher number represents extreme market greed and that prices could be inflated above true value, foreshadowing a future decline.

Following Bitcoin’s 10.4% decline to $43,313 this week, the index revealed a score of 27. The last time it printed a figure at or below this level was almost three months ago, on July 26th.

The index recorded one-year lows on July 21st with a score of 10, followed by a parabolic rally to five-month highs of 79 across late August and early September. This volatility has been paralleled across the entire cryptocurrency market, with prices frequently printing double-digits.

Related: Bitcoin bounces to $43K ahead of fresh crypto comments from SEC Chair Gensler

Reddit user u/_DEDSEC_ adapted the common trading mantra ‘buy the rumour, sell the news’ and commented that traders should "buy the fear, sell the greed."