$BTC Sentiment reference: Fear & Greed Index 50 (Neutral), down 4 from yesterday.
I used to think this index was based on survey results. Later, I realized it’s mainly calculated using several types of objective data, including volatility, market momentum and trading volume, social media engagement, Bitcoin’s share of the total market cap, and search trends. Surveys aren’t a major factor.
I use this index as a sentiment reference, but my actual decisions are still based on my own plan and risk management.
Extreme readings are usually accompanied by greater volatility. At times like these, it’s better to reduce your position rather than add to it.
I used to think this index was based on survey results. Later, I realized it’s mainly calculated using several types of objective data, including volatility, market momentum and trading volume, social media engagement, Bitcoin’s share of the total market cap, and search trends. Surveys aren’t a major factor.
I use this index as a sentiment reference, but my actual decisions are still based on my own plan and risk management.
Extreme readings are usually accompanied by greater volatility. At times like these, it’s better to reduce your position rather than add to it.
