Crypto Fear & Greed Index
Technical Indicators, Price Action, Chart Signals
Crypto Fear & Greed Index is a sentiment analysis tool that gauges the emotional state of the crypto market. It combines multiple data pointsÔÇöincluding volatility, market momentum, social media trends, dominance shifts, and search interestÔÇöinto a single score ranging from 0 (Extreme Fear) to 100 (Extreme Greed). Traders often use it to identify potential reversal zones, periods of accumulation, or market tops driven by emotional excess.
Use Case: A long-term investor checks the index daily to avoid buying during ÔÇ£Extreme GreedÔÇØ and instead allocates capital when the market dips into ÔÇ£Extreme Fear,ÔÇØ signaling panic-driven undervaluation.
Key Concepts:
- Sentiment Marker ÔÇö A tool or signal that reflects the emotional mood of the market.
- Technical Indicators ÔÇö Metrics derived from price, volume, or sentiment to help interpret market behavior.
- Market Maker ÔÇö Entities that provide liquidity and often move against herd behavior.
- Retail Traders ÔÇö Individual participants often driven by emotion, hype, or social sentiment.
Summary: The Crypto Fear & Greed Index acts as a compass for market emotion. It helps traders and investors recognize when excessive fear or greed may distort price action, providing potential entry or exit opportunities in line with contrarian strategy principles.
| Score Range | Sentiment | Market Behavior |
|---|---|---|
| 0ÔÇô24 | Extreme Fear | Capitulation, selling pressure, accumulation zones |
| 25ÔÇô49 | Fear | Cautious sentiment, possible undervaluation |
| 50ÔÇô74 | Greed | Rising prices, bullish sentiment, trend chasing |
| 75ÔÇô100 | Extreme Greed | Overconfidence, potential market top, exit zone |