Fear & Greed says 71, Greed. The $BTC chart says something else. That gap is a good lesson in how to use this index.
What it is: one number from 0 to 100 that blends several market and crowd signals into a mood reading. Low means fear, high means greed. It updates once a day.
When it is useful: at the extremes. Very deep fear often shows up near washed-out lows, and very high greed near crowded tops. Used against the crowd, it can warn you before price does.
When it misleads: in the middle, and when price is already turning. Because it is a slow daily blend, it can keep showing greed after the market has cooled.
Today is that case. BTC is at 83,070, down 0.97% on the day and 3.5% on the week, 3.9% under its 7-day high of 86,470. Hourly RSI is 40.7, on the weak side. Volume is 0.78 times its weekly average. $ETH is down 1.39% too. Yet the index still reads Greed, only easing from 73 to 71.
So the mood number is lagging the tape, not leading it.
Practical takeaway: treat Fear & Greed as context, not a signal. Only act on it at extremes, and only when price and volume agree with it.
#FearAndGreed #Sentiment
What it is: one number from 0 to 100 that blends several market and crowd signals into a mood reading. Low means fear, high means greed. It updates once a day.
When it is useful: at the extremes. Very deep fear often shows up near washed-out lows, and very high greed near crowded tops. Used against the crowd, it can warn you before price does.
When it misleads: in the middle, and when price is already turning. Because it is a slow daily blend, it can keep showing greed after the market has cooled.
Today is that case. BTC is at 83,070, down 0.97% on the day and 3.5% on the week, 3.9% under its 7-day high of 86,470. Hourly RSI is 40.7, on the weak side. Volume is 0.78 times its weekly average. $ETH is down 1.39% too. Yet the index still reads Greed, only easing from 73 to 71.
So the mood number is lagging the tape, not leading it.
Practical takeaway: treat Fear & Greed as context, not a signal. Only act on it at extremes, and only when price and volume agree with it.
#FearAndGreed #Sentiment
