Bitcoin's Fear and Greed Levels - Extreme Fear
Do you follow the Greed and Fear Index? I like to watch it as one indication of where the crypto markets are at and where it might be going.
If you don't know what it is here is a simple explanation:
How the Fear and Greed Index Works The fear and greed index is a tool used by some investors to gauge the market. It is based on the premise that excessive fear can result in trading well below their intrinsic values while, at the same time, unbridled greed can result in crypto being bid up far above what they should be worth. Some skeptics dismiss the index as a sound investment tool as it encourages a market timing strategy rather than a buy-and-hold strategy.
So, how does the chart trend over time? Here is the past year.
As prices rise people get more and more greedy and FOMO into all projects thinking that they can't lose. While BTC was at $65,000 we saw insane behavior with people aping into every dog and shit token, hoping the Bulls and Elon's tweets could sustain the market, I began to feel uneasy, but was still caught up in the euphoria of the Bulls.
The market space got too hot and needed to cool down some.
At the peak of 2017:
While I don't watch this really closely, I do keep an eye on it especially on days like today where everyone seems really frustrated and down on the markets.
As you can see the fear cycle can last quite a while and although we are headed towards a fear bottom, I don't think we are quite there yet.
All Markets have cycles, and I like to watch this emotional graph, because much of human behavior is driven by emotion, even though we all tell ourselves it isn't. I think we have to see the fear index get a little lower before a turn around.
I also think that means BTC goes a little lower before a turn around, but regarding a timeline, I think a few weeks at most.
None of this is financial advice, you could also choose to buy in or sell based on Tarot cards. :) Just fun things to watch.
Personally, I'm just holding through this phase.
If you would like to look at the crypto version of this index it is here.
https://alternative.me/crypto/fear-and-greed-index/
Or you can ask @banjo in any discord server that hosts banjo.
We often talk about the Fear index in our discord server THE PULSE, where we talk about Hive, Cub, BTC, Markets in general and all sorts of weird topics.
Come by and say hi!
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