Bitcoin Forum

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?

Just like funding rate and long vs. short data, it's good to keep an eye on it. It's good for giving a warning of impending capitulation or blow-off top, yes.

Unfortunately, it can be deceptive. I can't tell you the number of times I've heard "the index is greedy, we need a correction!" and then the correction doesn't come until price is 20-30% higher.

Sentiment works a lot like momentum oscillators like RSI and such. During a range market, it's safe and sensible to sell overbought and oversold levels. However during a very strong trend, momentum can become embedded in overbought or oversold zones for a long time. In the same way, during a very strong bull trend, the market can remain "greedy" for quite some time before the eventual crash comes.

To put it more simply: it's pretty difficult to trade based on sentiment alone because it's difficult to time. You'll want to look for other technical reversal signs too.

Thanks for your comment, agree with you that for technical reversal there must be some better confirmation signals, I watch key S/R zones, trend lines and MA breaks and yes, during strong trend or range market stochastic or other oscillators can be overbought/oversold for a long time. I also keep an eye on divergences in price and indicators, sometimes they signal a price reversal too.

Besides that Fear & greed index indicator, I am more using the volume of chart or much better if the Relative Strength Indicator (RSI) also a momentum indicator.
Since using RSI on your chart, it also indicates if the momentum of the market, like if the chart is oversold or overbought. The higher timeframe you will use in your chart, it's much better in RSI, just my 2 cents.

Thanks, do you think the volume indicator is reliable?

I don't use that index but I can say that it's actually saying the real thing that most of the people are greedy because of what we're seeing. Just like you, that's also my observation.

It's an helpful index if you're too conservative with your trades. But as a long time holder, this doesn't affect my decision making.

Yes, it is a very important indicator of when the market reverses. even Volume is a very good data to determine whether the growth is about to end or not.
when the index of greed is extreme, it manifests the human mentality of fomo and they are subjective. The sharks love this sign because it is the right time for them to sell off. If you are a full time trader, learn to understand the Fear and Greed metrics. It will make you a lot of money if you are proficient. ;)

Do you mean total bitcoin traded volume data? If volume declines that means a trend reversal and vice versa?

Was also disappointed to see my USDT is just sitting on my account waiting for the correction to happen but it just continues to go north. I use to hear users who analyzed the market that it can't sustain that long and when RSI tells the market that its overbought, it's got to go down. And then the thought also that I'm still a newbie in analyzing charts made me think I'm also wrong.


An opportunity to buy more is actually what some of us are looking after. If the price ain't dumping, the opportunity to earn more USD passed as well.

I think a time for such down is coming but nobody can give accurate time to it. The price have been steady on the up since it got above $12,000. It may be getting to a strong area for another drop. It had a little step down from 15,000 after shooting high towards 16,000.

Well..in trading I don't think anybody can give any accurate time on any movement but should keep an eye on some indirect signs and indicators of  possible corrective pullback or bullrun continuation.

Yes for me since I am using the volume indicator and the Relative Strength Index (RSI) at the same time or neither of the two.
There are a lot of analyses by just looking for volume, there you can see also if it's like the volume is not that good for that pump or breakout.
But since if we only looking for greed on the market, I rather use the Relative Strength Index (RSI), or combination with Volume indicator.

Nope. This tool is just for trader that trade based on what they feel about the market. Fear and Greed index are just measuring the ratio of buy to sell power that's why they come up to that index. That Greed sign usually stay that for a long period time especially when bull run so it might cause you to panic and early sell once you rely on it. It's still better to use indicators and sign like Doji for trend reversal rather than that index.

Yes, I use the Index quite a lot when trading. It lets me see what other people are doing and helping me to decide on my strategy. I even use it when trying to get a feel of the market also. The one integrated on CoinGecko is also quite good, specially when looking to buy in on Alts.

Checking the fear and greed index, it show 7 factors that are considered to determine the movement of the index; social media, dominance, Volatility, market momentum and volume, surveys and trend. The parameters are with different percentage and they sum-up together to give the direction of movement of the index on greed and fear of traders in the bitcoin market.

I never use this index. Honestly, this the first time I have heard of it. Though, it is quite interesting to me. So many indicators have been created just to please trader and give us different viewpoints. If bitcoin is in its dangerous zone, should we keep buying or wait for a correction?

Talking about correction, bitcoin is in need of a strong correction so as to go higher. We are at the point where it is hard to go back. The bull are in charge now and no one dares to stop it. It is reckless to stop the trend/train, right? Moreover, I have been thinking if bitcoin a whole week. It has brought many indicator in the past. Whether we have a chance to witness this habit again. It can be on its dangerous zone for many many days. Such as the RSI indicators had shown that bitcoin had been overbought for numerous weeks.

When it comes to index data then honestly i do really check out for these kind of information and its not something new about that index neither the entire market is on greed or in fear

and of course there are indications for that once you had saw on where we are on the recent market situation we are in.Whats next? You would surely think of on securing your position and sell it out

because theres always a tendency for market correction.We cant just have a continous rise in price because there would be a level or goal set where those big players will make a move on selling out their
stashes.

So its better to be prepared rather than letting yourself get caught into the dump but of course i cant blame out people not to be tagged along possible with some FOMO which isnt something unusual.

It's not an actual thought of the market but it's helpful if you want to know what does the community thinks at the current time.

If the majority starts to show greediness, you can have a contingency plan for your trades. Because when everybody starts to be greedy, that will create fear but on the other hand, bitcoin breached $16k despite what the index showed.

RSI indicates only if the coin is oversold (below 40 lines) or overbought (abobe 40 lines). I use when I think the market will make some reversal. I applied this concept together with macd so that I can notice the momentum of the price. Fear and Greed are the most influential factors that affect the mindset of individual traders. We should fight our emotions so that we can trade based upon what we want to gain results.

I only look for that index but never really used it in my trading.
If I am trading a specific coin, I look for the development progress and the team's capability to realize their objectives.
However, this index may be vital to some regular traders especially with bitcoin or other top alts.
Sometimes, we don't know where the greed index is coming from as it is a combination of various factors.

I hold the same opinion, if the movement was weak then the fear and greed index could be used to try to guess that a reversal was coming but when the movement is strong then the indicator can remain on the greed part for a very long time and trying to predict a reversal is a losing move, to me this seems like the time to just let the trend do its thing and see where it lead us and only once we see a reversal then you get out of your position if you are a trader or you keep holding if you are a long term investor.

Every trader has their own strategy. It's just another resource for them to rely on if they think it's going to help them be productive and do better with their trades. Somehow it's helpful if you're looking at the feelings of everyone in general.

Even the other markets have this type of index. Likewise, I also look at it but it's up to you if you will use it as a reference or not. It is a reference that you may use anytime at your will and also not if you don't like what it shows.

Maybe this index can help the traders to find the top or bottoms on charts but it is not a reliable source to announce the end of an uptrend. The greed speedometer is on the highest mark since 2018 and I prefer to sell rather than joining the crows. Better safe than sorry especially if the market is quite unstable nowadays. The crash may happen anytime. Using the sell limit orders can protect the trader from the highly volatile market conditions, never ignore the gold rules of trading especially if the market volatility is crazy like in crypto pairs.

We should really set up some sell point and not just wait before you do let yourself caught with the dump because as said where this market can crash anytime or having a major correction.
Instead on making profits you would eventually lose instead and that will really be a regretful and stressing thing for your part. I had experienced this mistake for several type yet ive been
dealing with some alts that had pumped too but missed out on selling due to i believe that it might rise even more and when it dumped then i do still thought that it might be some fake
dump and might go ahead until the price goes the the floor which i didnt able to sell for profits.For now when i do see gains then i do immediately making up decisions to sell.

People thinks that bitcoin is now in overbought area where they thought that any time a retracement or a dump that may happen but it is just a myth, when it comes to a trending cryptocurrencies; the overbought and oversold is not working. Actually the bitcoin is really indicating a bullish sign because it is now consolidating above RSI 70 which means the trend is really strong. The overbought area and oversold is only working when the market is non trending or it is in sideways wherein if the RSI touch the RSI 70 expect that the price will make a swing down while if the price touch the RSI 30 Expect a swing high that will happen. But in this case, it is not working because the bitcoin is currently trending.

When a market is oversold or overbought two scenario tend to happen firstly the market might experience a minor pullback or retracement before continuation in the previous direction or a total reversal will ensured.
Bitcoin is in overbought regions presently confirmed with RSI with 4 hour, daily and weekly timeframe however its quite difficult to envisage that its going to dump based on that indicator we should remember that 'price is the king', you really nailed it here that trending cryptos markets doesn't correlate with or obeys overbought and oversold decisions, personally I will wait for the retracement and re-enter the market based on Price Action while taking profits at the appropriate zones.

I am hearing about this Fear and Greed index for the first time lol. How do they even calculate those indexes? Wouldn't that be always high since when price starts dropping, there are people who starts investing because they fear that they will miss out on making maximum profit, and then when the price starts increasing, there will be people wanting to cash out and be scared that the price might crash anytime.
I have never heard from anyone referring to this index, so I doubt no one actually uses those index when trading. Those index kind of looks like it spreads FUD.

I'm more comfortable trading when the market fully retraced because I'm not used to buy when the price is in parabolic movement because I have doubts where I think that the price may go down easily if I buy. The market structure of the bitcoin is really good and for me the recent breakout is indicating a healthy trend where we can expect another rally that may come. People think that they are already late to buy bitcoins but it is wrong because remember that there are too many opportunities in the market;  we should just be prepared in order for us to get that opportunity that can greatly increase our portfolios.

Not having a proper trading plan is what promotes this extreme greed as OP calls it on the market. It's one of the worst things you do to yourself as a trader especially as a short term or swing trader. You find yourself stationed at the market at all times as you've got no specific aim or target.

The greed comes to play when, you've archived what is supposed to be your daily quota of the available pips in the market and yet, you choose to raise your take profit margin high and higher each time the market tends to move towards it. In that same instance, the market can move against you with an unexpected momentum and clears everything.

For now I don't think there is greed as the projected price will hit high prices makes anyone have high optimism as well, so there's nothing wrong about this. Any increase there will indeed be further movements that make prices fall, but the current trend is likely to continue to make prices higher and there is no concern for the price to be crushed.

That is the matter here that we need to tackle for trader, let it be known that the market can drive back and front which is either possible to grow the account or take your balance out. Learning how to do money management is a good skill to everybody.

I consider this an indication that corrections might soon happen when FOMO got over. This kind of emotion will ruin the momentum we have and huge dumps to follow as these emotional traders and investors dump instantly after seeing the price started to decline.

As the price moving high, the more people are buying Bitcoin and the more they become in FOMO. How that sad if the situation will turn back the same as 2017 Bullrun ended shortly? As a trader, we need to take a look at this, not only to focus on the market volume but much better to have them both.

Despite the extreme greed in the market Bitcoin is a very good currency for investment. There is a risk in investing in Altcoin. The demand for these currencies is very low currently everyone is investing in Bitcoin due to the rising price of Bitcoin. Many people in the market work for greed and then make more profit in which case they cannot survive for very long. The investment will depend on the market situation safe and strong sites need to be selected the market is now in good condition Bitcoin is trending.

To tell you frankly dude, I had been hearing Fundamental and technical analysis for quite sometime but never try to apply this in the actual trade.
Or I maybe applied sometimes Technical Analysis just don't when bur most of the time I most often depend only on the coins in the platform exchange that has a good volume and huge traders as well something like that.

Thank you for giving me a new knowledge to trade, yeah it will really help a lot for my all day trading. Because I'm still new to trade, I just learn about technical analyst, indicator strategy also fundamental analyst and it still giving me a huge loss. At least if I know more strategy I'll be carefull to entry and I may have an entry that can give me a profit and minimize the risk that will be faced. Indeed, bitcoin price now is really high, I haven't seen a big correction since a few weeks ago. Its price just up and up, it may be affected from the fundamental analyst that spread.

yes I have used this index and it is very accurate, if the index shows Extreme greed,
then big sales will haunt us, so make sure you have to have a good trading strategy.

Fundamental analysis is very complex in analyzing. I personally use technical analysis or chartist more often. on the one hand with technical analysis we can day trade and get multiple profits. Fundamental analysis will usually have an effect in the long run, I think the most important thing is back to personal trading style, which one we are more comfortable wearing

I used to feel like "buying low, selling high" is the only way to make money and I have invested during 6-7k period last spring so I am feeling comfortable.

However I have changed my mind about buying low part, because buying low could also mean "low according to who?" and we can't really answer that as global one type answer, to some people who want to buy today and sell when it is 50k in 15 years or if it happens sooner, buying today would be low, they do not mind buying at 16k when they are fine with waiting 10+ years to sell, but if you are a day trader and want to buy, you can buy at 16374 and sell at 16480 and still make profit, so people are really working towards their own buying and selling levels and each of them are different from each other.

We can really differentiate between long term holder and an active trader when it means on buying low and selling high thing because they do have different timeframe on when to sell
which its understandable and this is really depending into a certain individual because not all does have the same goal or mindset when it comes into their investment.
Just be careful on not to be dragged by your greed when it comes to your decisions because this would definitely be the reason for you to commit mistakes.
Now that the market is mooning then for day active traders then its the best part to secure profits now.

This is the safest bet in investment, no hassle and tension, just watch the market situation and see the bottom and then have the courage to invest hoping that it will rally again in a few years.

It all depends upon the market situation, suppose the market is rallying and showing no signs of slowing down, people usually invest heavily just to ride the market and in the last rally there were many who were trying to take advantage of the situation and ride the rally and many have maxed out their credit cards. So the idea about buying low depends upon market situation and all you need to know is to be smart about the market scenario.

IMO this index should be used as a gauge for the market behavior, a secondary or tertiary indicator.

I don't say that someone can't build a strategy around it, but to be honest there are better solutions out there that give you much more insight regarding the market movement.

Volume is one of the few indicators I focus on. I'm primarily interested in looking for volume extremes. For example, when you see extremely high volume coinciding with a wick through major S/R, you should be mindful of a possible incoming reversal.

I really like looking at dollar volume, rather than standard (BTC denominated) volume. It's easier to recognize volume extremes.

I also absolutely love the volume profile tool (requires a Pro account on Tradingview). Gaps in the volume profile are often magnets for price, the same way price gaps in stock and commodity markets are.

Fear and Greed? Yes we do know that any of these two can have effect on the market. The fear can lead to market fall and then on the part of investors ,if you’re being greedy and not paying attention, you’re going to end up being rekt. But the truth is that you don’t know the feelings of other people.

I know when prices are going up like this there will always be people who are afraid that the market might crash anytime, when you see that the market keeps increasing, you become scared that it has gone up so much and might fall. But the truth is that sometimes these feelings are wrong.

Greed is obviously a position where everyone wants to buy because it is going up, in crypto world we call these things FUD and FOMO and right now we are at FOMO period where bitcoin price has been skyrocketing like crazy.

This doesn't mean price will fall in crypto world because we are the ones who are making the market, in stock market world for example it could mean a crash because a company's worth and value is known in their books and how much it should be paid is known, but in reality people could still buy their stocks like crazy even though they do not deserve to worth that much which ends up with crashing the stock price back to what it should be or even lower. Crypto is not like that, its value is whatever we give it and that is why I believe it is highly important people do not fall for these indexes.

You're talking about intrinsic value vs. speculation, which is sort of sidestepping the question about sentiment. Sure, BTC's value is speculative, I agree with you there, but that doesn't mean extremely greedy sentiment can't precede a crash.

This is the basic idea behind sentiment analysis: when the market is extremely greedy and everyone has already given into FOMO, there is no one left to buy. Everyone has already bought. So there is nowhere to go but down.

Now, the problem with that approach is that greed and hype and demand aren't range bound. In a bubble, there are constantly more buyers stampeding into a FOMO-driven market, so sentiment can remain extremely greedy for weeks and months at a time. But keeping that in mind, it can be one factor influencing price, and it surely can precede a correction, especially during normal (non bubble) conditions. This is why I like to look for confluence in my analysis. When TA on multiple higher time frames and sentiment both suggest an incoming correction, it's usually a powerful signal.

If you keep observing the market behaviors then the chance to use this two emotions as an advantage may take place, fear, instead of going with the flow when market is falling try to review and research for the reason, you'll be able to pick the bottom and wait for the recovery period, while with greed, it's not bad if you use it properly, allow yourself to place your target avoiding you to use it too much.

I first learned about the "Fear & Greed" index in 2018. If I remember correctly, this indicator examines Stock Price Dynamics (MA), Strength, Breadth and another 4 more factors. The "intrinsic" value is determined by calculating their equal weighted average.

In my opinion, this index can be used well in analyzing regulated equity markets, but it is practically useless for predicting the movements of the global decentralized cryptocurrency market, because it is almost impossible to gauge whether coins are fairly priced or not.

I often watch the Bitcoin mining difficulty chart because I attach more significance to this technical indicator. If the BTC price drops sharply in the near future, the difficulty could fall below 16.78T. This is the level of difficulty that was before mining reward was halved in May 2020.

Some people say the bullish rally was driven primarily by recent news from PayPal. By January 1, 2021, whales are likely to keep the prices of BTC, ETH, LTC and BCH high enough to sell more expensive coins to PayPal customers.

In conclusion, I do not rely on the "Fear & Greed" index in my trading analysis.

By extension, what you're implying is that the Bitcoin market is in the overbought region now, right? Well, I used to believe that there was something like oversold and overbought areas when I started out trading a few years ago. That was in the past but experience has taught me there isn't anything like that. There can be corrections in the market from time to time, and this is fueled by fear of investors wanting to cash in on an opportunity to take profit and reenter later. It's an experienced way of trading. I often do this.
I don't follow any index because none is accurate. They're mostly lagging indicators.

Indicators often fail because i don't follow any indicators either can't always give the right signal this is why you need to use your business experience and follow trading strategies and trading charts even if there is extreme greed in the market it is foolish to harm oneself after greed. Many bad projects are being greedily scammed due to rising currency prices in the crypto market this is why you need to make yourself experienced in business and try to make money by following all the new and old trading rules.

Having experience in trading and business will be useful because you can analyze the market better than before. That can also increase your trading and business skills, allowing you to select the right coins. But if you can't control your greed to take the profit, you will lose the chance to make a profit.

The exchange indicator is enough for you to analyze the market situations, but if you don't know how to use it, that will be difficult to determine to enter and exit the market. But no matter what indicator you use, as long as you can learn details about the indicator, you will have the opportunity to profit.

I usually can't predic the price in such vulnerable market. It is very tough though. If yoi consider your holdings you will se some changes. Yes Btc is high now and getting increased. But see the altcoins. It is getting dumping now. So price analysis is now hard to predict. So it is no matter which indicator you used.

Funny thing I saw on reddit was a post about how back when in march bitcoin crashed to 3.8 for a while and everyone assumed it would go to 1k and everyone was afraid and there were people who actually said bitcoin would end because of pandemic and nobody would ever hold any bitcoins from now on because pandemic showed how bitcoin was useless in a world crisis.

From that day to this day we have actually gone up over 4x times. Not kidding, go calculate yourself, we were almost 4k and we are at 16k right now, so whatever you have put in that day would be 4 times bigger today. What do they say now? They say it will be 100k or 200k and more in 2021, why? Because they realized they were very late during march and missed out on a great chance, so they hope it would happen again today. This is very wrong way of thinking.

It's just how they take advantage of spreading FUDs like these just to make a chain of reaction to the people and the people who start the FUD will take advantage of it. This is what happened before and the people are repeating themselves with this kind of situation. We can see that hodlers from the day that bitcoin hits 4k will gain much profit today. We can see who is the real believers of bitcoin and those who are just making a profit on it. Those who risk that time got their pay off today and into the future.

I don't think the whole altcoin market is down now also you really can't predict the price of the market since it's volatile those indicators and charts are just your guide to what could be the outcome and there's a lot of outcome that can happen and you should make a strategy on how are you going to handle the outcome.

You will go crazy if you try to predict these alt markets. What you can do is just focus on coins that have vested interest with. If you are a holder of specific coins, just monitor closely their developments or updates, because you will get a hint on what's to come. But if you will really look at other alts for no reason, I think you are just wasting your time.

If he doesn't want to learn for that indicator, he can stick with the indicator that he already uses because if he can master the indicator that he used, I think he can skip learning the other indicators. But I agree that if we can master more indicators, that will help us analyze the market, and we can increase our skill better. We don't have to afraid of the mistake that we might make after we analyze because we are still learning. I am sure that if we can learn more and more, we can have a better analysis than before. We need more experience to have better analysis and more time to have better skills.

only selected altcoins can determine the bullish momentum in the current situation,
such as Defi altcoins and of course Ethereum, we know that this is a difficult season for altcoins,
but we don't give up, just keep holding your altcoins.

Choosing an altcoin for an affordable profit is not a hard task. But people keep wasting their money on scam projects or useless coins. My advice is to put your money in top 100 coins. They all have the potential to increase, even 10 or 20 times in the future or more specific, in 2021.

Holding your crypto without knowledge or elaboration can cause you to lose your money. In 2017, my portfolio had tons of shit coins and only 1 or 2 increased and bring me profit. But they can not handled my loss due to other shitcoins.

Personally, Ethereum is my perfect number one choice. No coin can have a better profile than Ethereum. There is nothing bordering me while holding ethereum. I have no fear with this coin. I dont want to feel exhausted waiting for shitcoin to make a movement

To me the only question is, when will the banks step in and short the hell out of BTC USD (https://de.tradingview.com/symbols/BTCUSD/) again? Anyone here remebers what happened 2017 on dec 27/28? Banks came up with an BTC Futures and shortet the hell out of it. Price dropped to 3.5k and until then, every little upmove was only banks selling their shorts to dump money. That is my opinion. So... the higher BTC price rises, the more I think banks will step in again and do the same thing again. Why?
-> Who has the biggest interest, ppl should lose money they investet into BTC because BTC is a real thread to them?
-----> Banks

-> Who's got enough money to short against all the BTC hodlers?
-----> Banks

-> who can short all year long, without having fear of a margin call?
-----> Banks

what do they need in the BTC Market?
-> a big Hype, so ppl buy at every price. What are we getting right about now?!

What do you guys think?

If you have been watching the market for a long time, you would not make that statement. Bitcoin is what sets the movement in the first place. Rest all altcoins simply follow the trend. Currently the effect is due to the Paypal deal for crypto payments and this fueled a big bullish trend. Altcoins are following it like anything.

But if you are wise enough you would sell off your altcoins at profit during this pump rather than keep holding on to them. Rest assured, they are not going to be next to bitcoin ever in future, they remain "alts".

What many people do not realize is that greedy index will slow down even if the price stays this way. So, it looks like we are in a greedy market right now and that is correct because price skyrocketed a lot and we still buying so we look like we are greedy, that is true and won't change today.

However, assuming bitcoin stays at $16k for 5 months (never stays at the same price for that long but this is just example) suddenly that greedy index starts to go down and becomes normal, why? Because we are greedy when we hit a new high price but when that price becomes normal the index becomes normal as well. So, do not be worried about looking at a greedy market, today's greedy market is tomorrows normal market and that is how I like to see what we are doing right now.

Anything aside from bitcoin would always be remained as alts yet nothing beats out the original crypto that we've been engaging for a decade.
When it comes to sentiments on why this market had pumped up then we have seen several big major events of adoptions that's why we are
currently seeing these numbers.Greed on the market? It isn't something new in talks about how people do react on it where the price is
rising up then their emotion of FOMO will really pop out but actually this is the best time to sell out your stash because we wouldn't know
on what would happen next.

To me, the Fear & Greed metric is really important for me to use and find good prices to buy and sell.  I often trade with high leverage so I have to be very careful in analyzing crowd sentiment. In addition, these indicators will often not be too accurate, so we also need to consider candles more to be sure of the victory.
P/s: Fear & Greed indicator and volume trade will be the perfect combination to help us to order / take profit at the most accurate and reasonable time. ;)

This is just an indication, as you say, but it is not something fundamental by which you should guide yourself, sometimes the strategies of the whales consist of making traders believe that to be able to make the opposite movement and thus win, it is like a jungle, not all investors or traders have an opinion, not all emotions are reflected there.

In the same way, it is good to have all this information so that you can carry out your commercial decision. What matters is that your trading plan is not affected by news, I learned that from a book by Jesse Livermore, which, he did not see or trade news so that they would not interfere in his analysis, of course today is decision of the trader to do what suits him best according to his criteria.

I am one of those who rarely use the fear and greed index when trading, maybe I feel that I don't fit with the strategy I use.
I mostly use volume indicators and RSI in trading, the more reliable and accurate I think. But that doesn't mean the fear and
greed index is bad, but using the fear and greed index only makes me panic if there is a bullish market.

Alts are begining to build up their momentum of recent and this started few weeks back after bitcoin dominance began to weak. What DeFi alts are doing right now is just a build up to its previous all time high so lets not get decieve and fall victims twice. Chances are many of them will complete this comeback successfully but be sure to have your stoploss in place just incase another correction follows.

While you advice to hold be rest assured that alts can't be trusted, they can easily get manipulated and tends to follow trending trends like if DeFi tokens are dumping other DeFi tokens follows suit. Profit taking should be the best way to stay under the protection of dumps that might occur in future.

I come to realize once again that every time there's a sway of the market in a different direction sentiment among newbie investors changes dramatically.

You have people who pour lots of money into shit alts and then worry that their investment isn't doing well because they ignored the signs of a bull BTC market.

The only thing you an do is learn not liquidate, and next time look for better opportunities and get to look at the market for over a few days as for sure you'll start seeing the trend/pattern the market is heading into.

Speculation isn't good if it comes from the back of a 'gut feeling' but from a more elaborate analysis of the market. As any speculation warrants at least some evidence.

AFAIK, Oanda US forex broker has created an excellent tool for measuring the fear/greed index on spot markets. Almost 90% of the indicators are based on the price action which can't be the source for fear/greed index, the sentimental spot market analysis can tell us what traders feel and what they are going to do as a crowd. If the volatility is high and euphoria happens, this is a clear example of staying away from buy orders that add more data for this indicator.

It looks like the accumulation phase in altcoins coins are now nearing to its end where for me it will the start of the price surges. Look at the coins that are belong in top 10 in terms of market capitalization like ETH and XRP, both of them have recent momentum where the candlestick of it telling that there are now a lot of investors and traders that are interested to buy it. When it comes to defi, I do not see major changes because for me it is just a short term trend wherein it will pump after it got listed then it will go down real quick where it indicating that there is a massive selling pressure where a lot of the holders of defi are in fear. I recommend to have a criteria to others if they will buy altcoins because not all of altcoins are good even the general market sentiment is in uptrend.

Using these tools should be with prior caution too. For experienced users there are many tools but newbies take time to get a hang of it. While the concept of market psychology still needs work from the newbies to get a grip of, it still remains more or less difficult to predict ever for pros.

Most of the times we are following the trend and not starting the trend. But even then we can make profits from that no doubt.

While someone may be happy using a certain indicator, how this correlates with the market psychology takes time to take in.

I think the reason why Bitcoin price is growing right now is mainly the fact there are more people willing to buy vs people willing to sell.

Why so many people willing to buy Bitcoin?

I think the main factor is the election of Biden as the US president.

He is known for social policies and pushing the $15/hr minimal wage idea which might make the dollar cost much less vs other currencies including Bitcoin.

That is why trading is so hard, you need to make your own judgement calls about what it means to be high and what it means to be low and that is something that is only gained by experience, it is precisely because of this that newbies get so poor results when they try to trade and it is why the stories of newbies been successful right away are very rare, you need to watch markets for years before you begin to realize what is a high point and what is a low point according to your own standards and once you develop that kind of feeling for the markets that is when you will begin to make profits.

If this was a good indicator people would only be using it to trade and always make money.

Fear and greed index is good as an addition but price can sit on extremes for weeks. When we were in bear market last year the index was showing fear/extreme fear for many weeks.
It is indicating a coming correction but that correction may come now or next week and in the meantime we could hit a new high.

Always remain to be in question because this market is already been unpredictable.You wouldn't know on when it moves neither it would pump or would dump but with those indicators you can
really tell that we are already on that greed area.

The question is, when would correction will happen? No one knows but for sure it would happen this is why people should be careful for them not to caught with the dump or
when the market tends to correct itself.

Selling will be ideal if you are in gains but it isn't bad if you do wait up for a little bit for possible price increase or breaking ATH's.

I'm a short term cryptocurrency trader but I never use such an index in my trading analysis because there are some occasions in the market which will change the trend of the Bitcoin market even when the signal shows the market to experience a dump in price.

You are right. Greed on the crypto market is a relative of the panic. When the panic starts, many people try to sell their cryptocurrencies to get cash. It often leads to the market fall, and even to the crypto winter. It happened in 2018, we all know about this time problems.

I don't know about these features and never used them and maybe that is why I am still able to hold my coins because if I start getting worried by these charts and parameters then I will be tempted to sell my coins. I hardly ever use these and all I know in simple is, the demand will increase and the halving will cause a shrink in the sell orders which means the supply will be limited which eventually means the price should rise, as simple as that.

I like how people are now again trusting in the market and even when the price touched bottom this year, I was one of the most relaxed investors and actually bought a little bit more because again the demand and supply chain will never end and it is made in such a way that the demand always increases while the supply shrinks further as we go.

Yes, I have used the Greed Index, it is accurate if the market conditions are very extreme, usually this is because FOMO is too strong so the market is overbought, I never buy coins when the market is overbought, because I know that soon the market price will fall.

Remember what BTC USD (https://de.tradingview.com/symbols/BTCUSD/) Dec 2017? problem is, only because something is overbought, does not mean it can't continue to rise... I agree I would not buy in these circumstances, but I would not unnecessarily sell in these conditions either. I am waiting for structure and then act on it if I see it on the screen. Works well for me so far.

Very true specially in the bitcoin market because no matter what the signals are indicating the market can move in any direction without any explanation or indication so yeah pretty explosive and dynamic market.

I hardly play with the price because I often buy in the bull run and then forced to sell in the bear run so I have stopped playing with the price of bitcoins but one thing I do is, when a small dip happens I buy some amount and as soon the market gets to the normal amount again, I just sell and save my profits.

Good luck and well played for people who held strong in tough times!

Yep, I think I get what you’re trying to say here: when there is a huge growth like this, there will be a sign of greed in the market and people will be hoping for more increase, you will start so many of them buying and making analysis of more increase.

At times like this is when FOMO kicks in and before you know it, the market will crash and so many of them will lose their money out of greed. Same thing happens when the market starts falling, there will be fear, just like earlier when the price was down to $3k and people were predicting $1k and $2k or even less, but instead the price turned and started going up.

For this particular index, greed level of 86 is categorized as extreme but it's not extreme in the context of a statistical distribution.

Historically crypto markets have rallied for months and months while this index consistently remained above 90, so we can say values above 95 here would be more statistically significant to look for imminent reversals...

Fear&greed index shows only a general market trend and it's not something you could use to know when to sell. For instance, there were instances where the index remained at extreme greed for weeks (2017 bull run). If you sold when it begun to show extreme greed you'd probably sell somewhere at 10k, when it later went to 20.


Yes, becaue with 50% increase in price over a short term, like 5 days, the indicator will naturally go to 80 and above, but that doesn't mean it's the end. It's the same with fear. We used to be in extreme fear 12-10 in March and April of this year.
Another interesting development is happening right now, on the day when we broke to a yearly high of 18700 greed went down from 94 to 86. So greed is dropping while we are pumping. I like it :)

price supposed to rise if market is over bought because over bought means there was a huge demand but we all have a buying preference and you dont need to squeeze your self in to buy if you think the price is too high for you but for some they will buy because they can afford it and they know that the prize can still grow .

greed is normal and still be manageable . you can use it as advantage to stay holding and buying but extreme greed sound exagerated already . too much is bad

I'm seeing this just now and it's got me wondering if there exists such a feature on any trading platform because, I'm yet to see it or maybe don't know the feature yet. I naturally thought, the fear and greed thing is your natural emotions of a trade you placed and not some algorithmic possible calculation of some sort.
What would be the bases for this calculation because if I may enquire?
Like the RSI (Relative Strength Index) it uses the number of buyers to sellers in the market at a particular period to determine strength on one side but then, what would be the bases for fear and greed index as an indicator should it exist?

They are trusting that the trend will go further and even the value is already high there's still possibilties that it will bring more for their invetment, to those who are not here as fomo's they really did a good research and they are basing things to work out according to the
research that they'e conduct.


If you know and understand what you are doing, this really makes a good advantage to you, not fearing the sideways and still believing with thw power of holding, greed can be your friend while working around this venue of investment.

This had been a typical tool or indicator in forex on whats the current situation of the market: https://money.cnn.com/data/fear-and-greed/
For now im a bit already worried into this kind of movement where it is moving way up too fast imho.We are almost hitting 19k in no time
and maybe only in this month we will hit 20k if this cant be stopped.I have already sold my bags and im waiting now for the
correction to accumulate again but it seems it doesnt have any plan to go down.

People need to understand that indicators do exactly what it is in their name, they indicate something but they are not going to tell you exactly when something is going to happen, that is something that the trader needs to decide by themselves, we know that we are in a period of the market which is experiencing extreme greed and I do not see this changing during the next days because people have a lot of hope that we are going to reach a new ATH during that time, and if we do then there is no telling how high the price will go and most likely we will remain in the greed part of this index.

I've read about extreme Greed, that extrem greed will bring the price of an asset to experience a selling action,
this happened because of an observation, yes, this is my observation too, because this tendency makes people greedy.

But I think it's just a correction, not a reversal. In my opinion, politics as well as major countries in the world are very chaotic, that will reduce the value of Fiat money, then the demand for Bitcoin will be even more.
Maybe this year the Halving event will make the price of Bitcoin pump stronger than before, let's wait for the results. ;)
 I predict Bitcoin's price this year will soon reach $ 26k.

One thing in crypto currency trading, and investment is that greed takes you no where at all. One of the most focal attitude you have to fix while joining crypto currency is your attitude and response to market pump / dump. Irrespective of the strategies you employ in trading; you cannot have maximum profits with GREED.

I do watch Fear&Greed Index and yeah, when there's too much good happening in the markets, you also need to be prepared for some "blood on the streets" kinda scenario soon. People have greed in their souls but are also afraid of losing a ton of money invested during this point of time when BTC is too high and when something hangs high, chances of an extremely huge drop are immense. My talks may sound like I'm bearish on BTC but I'm not, these are the facts which can't be overlooked. A correction or at least a retracement is incoming.

Counters and disagreeing into those words you have said do proves out on being a permabull. ;D

Things like this is inevitable on where the market is hyping up that fast then we cant really remove the fact that we would definitely having the time of some price crash or correction.

This had been always part of the market where there's rise and there's fall down.They do differ in intensity or level but doesn't mean that we should neglect every on the smallest possibility

yet you can either benefit or would totally be on losses.

So damn true, a lot of people are believing that there is going to be another ATH, and even the price when you look at the way it’s been going you don’t need anyone to tell you that the price will be reaching a new ATH price, the moment you look at the chart you mind tells you that.

But, once the price is above the last ATH price you’re going to see a lot of people panicking, that’s when you’re likely going to see a fall, because people will be afraid that it’s going to fall now that it has passed the last all time high price.

With that case, you also need to add it up with your plan, there are always retrace that will take place, and if influenced is much stronger for the dumper to keep selling it will happened that way. Many traders who already gaining from this market knew this alternatives, they simply adjust with the momentum and still benefits from  how the market runs.

For now, we are still seeing huge amount of investors who are positive and it shows from the current market valuations, most are still in green and the trends are still keeps on moving upwards, better to deal with it with strict but careful decisions.

The OP was posted on 11th November and if you see the trend since the time of this thread posted, the price has only gone up which again makes me believe like these Fear&Greed and other charts are just not accurate or even give a rough idea. I would have respected these charts had the price stayed same but it has gone up and this clearly tells you that the crypto market at least cannot be determined by these charts and usual analysis.

I am going to buy even more Bitcoins probably once I get my salary and that is because I am expecting some new records to be set in the next year and yeah you may discuss about the crash that is going to happen, but I have my own belief in Bitcoins.

greed is indeed part of the market, even traders also have the emotion of greed,
many traders are trapped because of greed, the increase that occurs is only an illusion and the dump that occurs is also just an illusion,
and causes people to regret, that is a greed that will make us exposed to the illusion of a market, so don't be greedy, be wise

As we talk the price continues to rise which again proves that these extreme greed speculations and observations might mean nothing.

You might be right and the price might drop but as a small trader one should rather look for long term profits because someone holding 0.1 BTC won't become rich by selling at 20k or if the price drops to 15k he would only face $500 loss which is not too big although it is significant but imagine if the bull run continues and reaches something like 50k a small trader just easily 5x his money.

If you are holding 10-20 BTC then yes you should maybe sell if you think the market is going to crash soon because the profits and losses involved are massive.

With BTC rocking between high 18K and low 19K with the possibility of crossing the 20K mark at any time this year, how could you not be expecting GREED to come in?

Of course, keeping the greed level in check is important but I feel that at times like these many people forget to apply what they know already and instead go with the bull run effect. It is difficult to hold back when the market is so green...

You are right and as a human being these kind of reactions or emotions will be considered normal this is why actions made will always be that common when market is really in a bull run.
You cant say that people should be on that greedy mode but holding back that feeling is really hard to ignore.

Feeling of getting Fomo'ed will always form in times like these and the most important thing to those people who had invested on lower prices in active trading manner is to safely secure
out their profits first before making any re-entry.

Lets see if the price will have some another huge rejection or correction until it bumped the previous ATH or would completely break it out and would go further beyond.

And you got your prediction right, we are now experimenting a correction but like always this generates more questions than answers, what will bitcoin do from now on? Has the market enough strength to recover from this slight decrease in the price to keep going up in value? And if that is not the case how big will the correction be or could it transform itself in a crash under the wrong circumstances? At this point the only thing we can do is to wait but at the same time that is the hardest thing to do.

Exactly, it may be a exceptionally vital marker of when the advertise switches. Indeed Volume may be a exceptionally great information to decide whether the development is around to conclusion or not. When the list of ravenousness is extraordinary, it shows the human attitude of fomo and they are subjective. The whales adore this sign since it is the proper time for them to offer off. In the event that you're a full time dealer, learn to get it the Fear and Ravenousness measurements.

To be honest, I have never used the fear and greed index indicator, because I only rely on MACD and RSI for now when trading. But related
to greed, sometimes it has a positive effect, in my opinion, it makes me more willing to take risks. And maybe luck is on my side, because when
the Bitcoin price hits $ 20,000 in 2020.

Because I was influenced by my irritability, I didn't sell it at that time. In fact, I kept HODL when the Bitcoin price crossed the $ 30,000 mark. Finally
I decided to take profit when the Bitcoin price touched the price of $ 35,000. And because I followed my greed, the profit I got was huge. Even though
I realize this is bad advice, by following the greed in us.

It is difficult to predict of course what will happen to bitcoin, when the price goes up so high, and when there is a slight downward movement taking place in the market, of course many people are afraid of a deeper decline, but I think things are difficult will happen that The price will move down even further, and I believe the price will move up and down a little according to market demand.

These indices are indicative, they cannot be taken as a measure of commercial decision, it can be seen, for me the best thing is to study the volume, in the volume is the information that few see, I would trust much more the news than those indices.

People who are afraid of those small downwards are the inexperienced ones. They are thinking of the negative side that will make bitcoin price pull at the lowest that it can but it won't happen. There's always a percentage like 10% - 30% or even 50% but if that happens, a healthy pull back will always come to save it. And greediness through thinking that it will come everyone for which it will go high and sky is the limit, it is possible but it's a process if ever your desiring price is too high.

Bitcoin is heavily influenced by trends, and even most new traders use the infuncer on twitter as their benchmark for making decisions. I'm sure the index is quite useful in certain respects, but not in a comprehensive way and more on the specifics and in the short term

If the favorite coin that is being hold discussed a lot by influencers, then it is okay to hold it, it's just that greed can't be avoided,
we know this has entered the extreme gred, because many people still want the price of Bitcoin and other altcoins to fly high again and again ,
so that the profit you get is more and more, of course this makes the indicator to be extreme greed,
be careful the whale will play the manipulation on this condition.

Who doesnt want to have more when  it comes to profits? Its part of human nature on being  greed and when  you do  saw that prices are way mooning in the market
which would really give out that perception in mind  that we might really be seeing real  high prices later on.

Big players will really be taking advantage when FOMO had already on set and where people had already gaining up much confidence in the market
which will really result on what they had anticipated on.

As a small fry into this market then you should know to on whats the thing you should target on or having the goal. Secure profits while you still can.

That is certainly the truth. The inexperience once have this doubt and fear when it goes red. It could be useful in protecting yourself against what you can't afford to loose while, you build your experience of the market but, they also have to come to the reality that, you can make money both ways. You've just have  to focus on how and relate a pattern that appears real to you then, you follow it. In doing so, you mostn't follow every move in the market. That's where the greed comes in, guide against it too.

That Greed sign for the most part stay that for an extensive stretch time particularly when bull run so it may make you alarm and early sell once you depend on it. The bull are in control now and nobody dares to stop it. It is crazy to stop the pattern/train, isn't that so? Also, I have been thinking if bitcoin an entire week. It has gotten numerous marker the past.

The sharks love this sign since it is the correct time for them to auction. In the event that you are a full time dealer, figure out how to comprehend the dread and ravenousness measurements. It will make you a ton of cash on the off chance that you are capable. I have been thinking if bitcoin an entire week. It has acquired numerous pointer the past. Regardless of whether we get an opportunity to observe this propensity once more.