The fear and greed index in the market has reached 75, which means we are officially in the greed zone. This reflects a very high level of optimism among most investors, especially after we saw large institutional flows and the entry of major players into the market. Naturally, this gives a feeling that prices still have a chance to rise further.
But history tells us that when greed rises quickly, the market sometimes makes a sudden correction. This means that suddenly you might find prices taking a breath and dropping a little before continuing. The difference this time is that there is strong support from institutions and ongoing demand, which could make any decline temporary if the overall trend is still upward.
As an investor, you need to work smart; if you have profits, you might take part of the profits and set it aside as cash in case a correction happens, so you know you can enter at better prices. And if you are new, be cautious and don’t invest all your liquidity at once; divide your entry into stages.
The market is indeed very tempting right now, but there is no such thing as a rise forever. Benefit from the momentum but always have a plan ready to deal with any downturn. Crypto is a game of speed and intelligence.