📌 Market Sentiment Watch: The Power of Crowd Psychology
Market sentiment is a crucial force behind price movements. When fear dominates, investors panic sell, leading to price drops. When hype takes over, FOMO buying drives overvaluation and bubbles.
Sentiment indicators like the Fear & Greed Index, social media trends, and on-chain data help predict market shifts. Negative news, regulations, or whale sell-offs can create sudden downturns, while bullish sentiment often follows major partnerships or ecosystem growth.
The best traders balance fundamentals, technical analysis, and sentiment tracking to make informed decisions. Understanding what the market feels can be just as important as what the charts show.