A quick note: $BTC Sentiment reference: Fear & Greed Index 62 (Greed), up 5 from yesterday.
People often ask what the Fear & Greed Index means. Here’s how I understand it.
It combines several types of data: price volatility, market momentum and trading volume, social media buzz, Bitcoin’s share of the total market cap, search engine trends, and more.
The same reading can mean different things in an uptrend and a downtrend: during an uptrend, greed can persist for a long time.
The point of understanding this indicator is to avoid being spooked by a single number, not to use it to predict whether prices will rise or fall.
People often ask what the Fear & Greed Index means. Here’s how I understand it.
It combines several types of data: price volatility, market momentum and trading volume, social media buzz, Bitcoin’s share of the total market cap, search engine trends, and more.
The same reading can mean different things in an uptrend and a downtrend: during an uptrend, greed can persist for a long time.
The point of understanding this indicator is to avoid being spooked by a single number, not to use it to predict whether prices will rise or fall.