Learn About the Fear and Greed Index in Cryptocurrency
often expressed through indices such as Fear and Greed Index or Sentiment Index. The score of this index ranges from 0 to 100 and is often divided into the following thresholds:
Extreme Fear: Score below 20. During this stage, the market may be oversold and investors tend to panic. This could be a good time to buy.
Fear: Score from 20 to 40. The market has a negative trend but not to the point of panic.
Neutral: Score from 40 to 60. The market is stable and there is no clear trend towards fear or greed.
Greed: Score from 60 to 80. Investors tend to be more greedy, which can be a warning sign that the market is overbought.
Extreme Greed: Score above 80. The market may be overbought and at risk of a correction.
Understanding these thresholds can help investors make informed decisions during cryptocurrency trading.
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