$BTC Sentiment thermometer: Fear & Greed Index 69 (Greed), up 8 from yesterday.
I used to think the Fear & Greed Index was based on survey results. Later, I realized that surveys aren’t the main factor: volatility and trading volume carry the most weight. A sudden increase in price swings is often counted as a sign of fear, while a sustained rise in trading volume during an upward market is seen as a sign of greed.
The point of understanding this indicator is to avoid being misled by the numbers, not to use it to predict price movements accurately.
#BTC
I used to think the Fear & Greed Index was based on survey results. Later, I realized that surveys aren’t the main factor: volatility and trading volume carry the most weight. A sudden increase in price swings is often counted as a sign of fear, while a sustained rise in trading volume during an upward market is seen as a sign of greed.
The point of understanding this indicator is to avoid being misled by the numbers, not to use it to predict price movements accurately.
#BTC