🚨Analysis and Assessment🚨
1. Interpretation of value 61 (Greed)
• Positive and excited mentality: Many people are buying in, believing that prices will continue to rise.
• Possibility that prices are at a high level: When the market is greedy, prices often trend to be pushed above fundamental levels (overbought).
• Risk of correction increases: Historical studies show that when the index exceeds ~60–70, the probability of the market reversing (pullback) is higher compared to the “fear” phase.
2. Advantages and disadvantages of the index
• Advantages:
• Multi-dimensional synthesis (price, volume, social media…)
• Updated daily, easy to track general sentiment
• Limitations:
• Does not reflect “fundamental” factors such as legal news, technology updates.
• It is just a sentiment indicator, not an independent buy/sell signal.
3. Observations and action suggestions
1. Pay attention to taking profits
The market is excited; if you have made significant profits, consider taking some off the table to secure your capital.
2. Review risk management
Reduce the size of holdings in a few coins; set stop-losses/hedging plans in advance.
3. Monitor supporting technical indicators
MACD, RSI, or volume profile framework, to confirm whether it is truly overbought or not.
4. Do not chase FOMO
When everyone is greedy, it's easy to “chase the peak” – be patient and wait for confirmation signals of a new trend.
📊In summary, the index indicates that the crypto market is in a greedy phase, posing the risk of sudden corrections. This could be a safe profit-taking opportunity or a gradual reduction of leverage, rather than pouring more money in at short-term peaks.