#MarketSentimentWatch

The sentiment of the cryptocurrency market reflects the perception and emotions of investors, influencing the direction of prices. It is measured through indicators such as the Fear and Greed Index, trading volume, and social media.

A positive sentiment drives demand and prices upward, while a negative one generates massive sell-offs and declines. Factors such as news, regulations, and whale movements affect this perception.

Traders analyze sentiment to anticipate trends and adjust strategies. However, relying solely on it can be risky, so it should be combined with technical and fundamental analysis.