Fear and Greed Index in the Cryptocurrency Market 😨😎
🔹 What is the Fear and Greed Index?
It is a tool that measures "market sentiment" daily, giving you a glimpse into the psychological state of investors.
The goal is to help you make smarter decisions when trading 🧠📊
🔹 How does it work?
The index is given a number from 0 to 100:
From 0 to 24: Extreme Fear 😱
From 25 to 49: Fear 😟
From 50 to 74: Greed 🙂
From 75 to 100: Extreme Greed 🤩
The higher the "greed," the higher the likelihood of a correction or decline.
And the higher the "fear," the more opportunities for smart investors 📉📈
🔹 What affects it?
The index depends on several factors, including:
✅ Price volatility
✅ Trading volumes
✅ Bitcoin movements
✅ Survey results
✅ Social media interactions
✅ Internet search trends
🔹 Why is it important?
Most investors act on emotion... buying in greed and selling in fear.
But the smart investor does the opposite:
🔁 Buys in fear
🔁 Sells in greed
Therefore, the index is used as a tool to help time entry or exit from the market ⏳💼
✨ Summary:
The Fear and Greed Index is not a magic tool, but it is useful in understanding the general mood of the market, and is used alongside technical and fundamental analysis.