The BTC fear and greed index returned to the “fear” zone for the first time since September 2023.
In recent days, the Index has been actively declining, since April 30 there has been a real dump, from 67 to 43. At the same time, the upward trend of the Index since June 2022 has not been broken.
Current shorts are a dangerous idea in such a situation. And selling spot can be a rash decision.
Let us recall that to determine the Index of Fear and Greed, six parameters are used, with different “weights” in the calculations:
1. Volatility (25%). Comparison with corresponding averages for the last 30 and 90 days. An unusual spike in volatility is a sign of a “spooky” market.
2. Momentum / Market size (25%). Again, compared to the last 30 and 90 day averages.
3. Social networks, specifically Twitter (15%).
This parameter is currently determined by Twitter analysis. Messages with various hashtags are collected and counted.
4. Surveys (15%). Together with the strawpoll platform. com, the developers of the Greed and Fear Index conduct weekly surveys and find out how people perceive the situation on the market.
5. Domination (10%).
6. Trends (10%). Google Trends data is analyzed for various BTC-related search queries.