$BTC Sentiment reference: Fear & Greed Index 63 (Greed), up 10 from yesterday.
I used to think the Fear & Greed Index was based on survey results. Later, I realized that it’s actually calculated mainly from several types of objective data, including volatility, market momentum and trading volume, social media buzz, Bitcoin’s share of the total market cap, search trends, and more. Surveys aren’t the main source.
Rather than focusing on the figure for a single day, it’s often more useful to look at the direction it moves over several consecutive days: a gradual recovery from a low is not the same as a sharp drop from a high.
Indicators can fail, so risk management shouldn’t be skipped: deciding in advance what to do if you’re wrong is more important than guessing correctly.
I used to think the Fear & Greed Index was based on survey results. Later, I realized that it’s actually calculated mainly from several types of objective data, including volatility, market momentum and trading volume, social media buzz, Bitcoin’s share of the total market cap, search trends, and more. Surveys aren’t the main source.
Rather than focusing on the figure for a single day, it’s often more useful to look at the direction it moves over several consecutive days: a gradual recovery from a low is not the same as a sharp drop from a high.
Indicators can fail, so risk management shouldn’t be skipped: deciding in advance what to do if you’re wrong is more important than guessing correctly.