#MarketGreedRising How is the Crypto Fear and Greed Index calculated and how should it be used?
The crypto market is highly driven by emotions. When the market rises, people often become greedy, leading to FOMO (fear of missing out). Conversely, market declines can trigger irrational selling in response to seeing "red numbers". The Fear and Greed Index aims to help you avoid these emotional overreactions.
There are two simple assumptions:
Extreme fear may indicate that investors are overly worried, potentially presenting a buying opportunity.
Excessive greed often signals that a market correction is imminent.
The creators analyzed historical Bitcoin market sentiment and condensed the data into a scale from 0 to 100.
0-25: Extreme fear
25-45: Fear
45-55: Neutral
55-75: Greed
75-100: Extreme greed
Please note that this indicator lacks sufficient historical samples to fully validate its effectiveness. Use it carefully as you develop your own investment strategy.