The Fear and Greed Index has now accumulated 50 consecutive days in fear and extreme fear territory, an unusual scenario that reflects the emotional state of the market. Prolonged periods of fear often indicate a decoupling between the current price and the real value perceived by long-term participants.
Historically, these prolonged stretches have coincided with stages prior to significant recovery movements, where distribution stabilizes and opportunities arise for profiles looking to accumulate. The market is at a critical emotional point where decisions tend to amplify trends.
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