Recently, everyone may have noticed the change in market sentiment. The Fear and Greed Index has gradually retreated from its previous high of greed and is now showing a value of 45, which is neutral. Simply put, the market is slowly cooling down from extreme greed, without entering into panic, meaning that people have not completely lost confidence, but the market sentiment is clearly not as strong as it was in the previous weeks.

Looking at historical data, last month's index was still at 68 (greed), and the same period last year was only 46 (neutral). In terms of annual extremes, the highest was 88 (extreme greed) and the lowest dropped to 15 (extreme fear). This indicates that the current market sentiment is at a relatively low level but has not yet fallen into the panic zone, and many potential targets may currently be undervalued.

If you have been waiting for a bottom-fishing opportunity, this is actually a very good signal that market sentiment is starting to cool down, and prices may be approaching support levels, but panic has not yet fully escalated. At this time, the risk is relatively controllable. Don’t be scared by short-term fluctuations; gradually build your positions and patiently wait for the market to warm up.

To summarize: The sentiment index shows a neutral to low reading, which is a good opportunity for smart investors to observe and select targets. Stay calm and seize the bottom-fishing window brought about by the cooling of market sentiment.