$BTC |Fear & Greed Index 55|Greed|Down 4 from yesterday
Before discussing capital flows, first understand the Fear & Greed Index.
It combines several types of data: price volatility, market momentum and trading volume, social media discussions, Bitcoin's share of the market capitalization, search trends, and more.
The sentiment index generally follows price movements: prices plunge first, and fear rises afterward. So it reflects market conditions rather than acting as a leading indicator.
Before trading with leverage, first consider whether you can withstand the worst-case scenario, then think about what the indicators are saying.