Market Sentiment Watch involves tracking investor emotions and perceptions to gauge potential price movements in financial markets, especially in crypto trading. Sentiment analysis uses on-chain data, social media trends, trading volume, and funding rates to assess whether the market is bullish, bearish, or neutral. Metrics like the Fear & Greed Index, exchange inflows/outflows, and whale activity provide insights into investor confidence. A surge in negative sentiment often signals potential buying opportunities, while excessive hype may indicate overbought conditions. Monitoring market sentiment helps traders anticipate trend reversals, volatility spikes, and key entry/exit points, improving decision-making in dynamic crypto markets.
