Extreme greed on the market

[South Park]

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.

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.

[jossiel]

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.

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.

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.

[Danslip]

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?

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.

[Mahanton]

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?

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.

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.

[KnightElite]

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.

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.

[gabbie2010]

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.

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.

[adzino]

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?

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.

[TitanGEL]

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.

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'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.

[Smartvirus]

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.

[hahay]

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.

[palle11]

In that same instance, the market can move against you with an unexpected momentum and clears everything.

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.

[Kelvinid]

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.

[Hasmizara]

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.

[kramchers]

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?

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.

[Ridwan Fauzi]

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.

[judaspriest]

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?

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.

[mamahdedeh]

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?

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.

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

[redsun114]

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.

[dunfida]

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.

[7788bitcoin]

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.

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.

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.

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.