Bitcoin Fear and Greed index. Don't time the market!

[maju69]

I think ...if you experienced the price drop from $18 000 to $3000 back in 2017 or after that... you cannot be called a newbie anymore. A lot of people thought that the price will go down to zero back then and it was panic stations all around. The die hard Bitcoiners stuck to their guns and they Hodled right through that.

The reward..... $60 000+ Bitcoin price in 2021  So, what have we learnt from that? ...Answer : Do NOT panic .... hodl for long-term profits, not short-term losses. 

Precisely, but only few can really ignore what is happening right now, despite experiencing the ups and downs of 2017/18 some people still freak out over every market correction, and then the panic mode sets in and give birth to non-stop selling, it is a good thing the weak hands will be gone soon so the market can reverse, honestly we really have more dumb than smart investors in the space, imagine those who bought at top will panic sell for no reason.

Yes, that's the way it goes, buy above then panic and sell. Buy again above, panic again and sell again  . If this is the case, there will be no progress. They don't learn from what happened.
I understand, when people buy bitcoins they want profit, including me. But there is something we must understand there. Will we always be lucky? I said no. In situations like that we have to be strong mentally and patiently.

[teosanru]

This is the only time you would really see this fear and greed index would be helpful on which you could presume out that the entire market is on that fear side
where you could really apply your own analysis and made out specific actions basing up on what you do saw.It is right that you shouldnt rely on it since it wont
be accurate but having these things is much better rather than have none because having at least some reference isnt bad at all.

I didn't get what are you trying to say. I mean if I am doing my analysis separately how is this useful? Moreover my very simple question was that what could I have done yesterday after seeing the index. A simple answer from anyone would have been yes buy but what happened today morning was that market tanked $5k and a person would end up in loss.

After reading your first question, I do understand what you’re trying to say, and it is quite the same thing that they OP is trying to answer here. When the market is in bearish time, people are afraid of investing because they feel that the market would continue to go down and not gain any value for them when they invest. So when the market is in the fearful state, that should be the right time for you to invest.

If you’re able to invest during the bearish time, and hold it till the bull run starts, then you would be making profit while others are trying to rush in out of greed, and when you notice that the greed is high during the bullish times, you can then decide to sell your coins and take your profit before the market starts to fall. So what they OP said really applies to buying and selling. But at the same time you should also try to do technical analysis because it can be quite helpful.

My question I think still remains unanswered, why would you want a lagging indication of the feel of the market? You are saying to buy and wait for bull run, now the market might fall to 20k from here and show fear and then reach 36 and show greed, shall I then sell at 36? If we are going to do this only then why don't we just hodl? Isn't that a better option if you are ready to wait until the next bull run.

[virasog]

Newbies won't notice it but the chart does not lie us. If you are not too sensitve, you won't realize it. On the chart, the psychology of market in January of 2021 and 2022 are totally different. The first one is extremely greed (score is 93) and the second one is extremely fearful (score is 21).

Also, nobody is thinking that when the price was between 30- 35K last year in the first quarter of 2021, the fear and greed index was showing as extreme greed but now the price is at a similar level of 35,000$ but the fear and greed index is at extreme fear. That's how the difference is sentiments at the same price level.

Bitcoin fear and greed index is a good way to time the market but this is not perfect. For example, we are now at extreme greed which means that we should buy bitcoin now but bitcoin can still reach 31K or even below. The same is true for the upside. You may sell bitcoin at 55K as you would see full greed but bitcoin may continue to 65K or more.

[JohnBitCo]

This is the only time you would really see this fear and greed index would be helpful on which you could presume out that the entire market is on that fear side
where you could really apply your own analysis and made out specific actions basing up on what you do saw.It is right that you shouldnt rely on it since it wont
be accurate but having these things is much better rather than have none because having at least some reference isnt bad at all.

I didn't get what are you trying to say. I mean if I am doing my analysis separately how is this useful? Moreover my very simple question was that what could I have done yesterday after seeing the index. A simple answer from anyone would have been yes buy but what happened today morning was that market tanked $5k and a person would end up in loss.

After reading your first question, I do understand what you’re trying to say, and it is quite the same thing that they OP is trying to answer here. When the market is in bearish time, people are afraid of investing because they feel that the market would continue to go down and not gain any value for them when they invest. So when the market is in the fearful state, that should be the right time for you to invest.

If you’re able to invest during the bearish time, and hold it till the bull run starts, then you would be making profit while others are trying to rush in out of greed, and when you notice that the greed is high during the bullish times, you can then decide to sell your coins and take your profit before the market starts to fall. So what they OP said really applies to buying and selling. But at the same time you should also try to do technical analysis because it can be quite helpful.

My question I think still remains unanswered, why would you want a lagging indication of the feel of the market? You are saying to buy and wait for bull run, now the market might fall to 20k from here and show fear and then reach 36 and show greed, shall I then sell at 36? If we are going to do this only then why don't we just hodl? Isn't that a better option if you are ready to wait until the next bull run.

I also agree that fear and greed is lagging indicator. I would call it an indicator even. It just shows the market sentiments which can be judged by the price action too. If the price is falling and making lower lows, this means that people are fearful to invest in that coin or assets. I prefer price actions over any kind of lagging indicator.

[bestwor1]

I am sorry to call people who have less than 4 years in the market as newbies. Reasons: they have yet gone through a full cycle of bullish and bearish period so they don't really experience how rosy and bloody the market is in different periods.

Four year is too much for some people, some people can spend 10 years and remain to be a newbie because they are only hearing about most but they do not know what is going on and the facts but for someone that are into crypto for 4 years, study the market and know many things, they will not be called newbies. I am getting what you are saying but we have to consider that people have different cognition and some people learn the past very fast to know the right direction to take.

You're right. I saw many people who successful in front of my eyes with their proper research and i am here lol, still newbie.  

[royalfestus]

After another 4 year (cycle) with the bitcoin halving period, this time, we might have a different outlook on what we call the cycle. If the proposed super cycle happens this year, predicting the market might get more difficult and make every one in the market not different from each other. It get more difficult to hold bitcoin at the price it is attaining now and ROI for holders is declining.

[Emitdama]

These things only applies when you are investing in a good asset or coin. If the coin you’re investing is a shitcoin, then it doesn’t really worth all the stress. Some people are really bad in making choices in the cryptocurrency market, and you would see them investing their money in assets that are not really worth it. They just like to follow the trend, and as time goes on the trend disappoints them.

The best decision you make is investing in cryptocurrencies that would be worth it on a long term, and not just all these one time and one shot coins that would only last just for a short time, and before you know it they will start losing value for good and wouldn’t even get another chance at increasing in value again.