Crypto Fear & Greed Index

Crypto Fear & Greed Index

Technical Indicators • Price Action • Chart Signals

sentiment-based reversal indicator

Crypto Fear & Greed Index is a sentiment analysis tool that gauges the emotional state of the crypto market. It combines multiple data points—including volatility, market momentum, social media trends, dominance shifts, and search interest—into 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 “Extreme Greed” and instead allocates capital when the market dips into “Extreme Fear,” signaling panic-driven undervaluation.

Key Concepts:

• Sentiment Marker — A tool or signal that reflects the emotional mood of the market
• Technical Indicators — Metrics derived from price, volume, or sentiment to help interpret market behavior
• Market Maker — Entities that provide liquidity and often move against herd behavior
• Retail Traders — 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.