Crypto Fear & Greed Index is an indicator that tries to measure the emotional state in the cryptocurrency market. This index combines different factors to evaluate the current state of the cryptocurrency market and measures the overall emotional reactions of investors.
This index usually takes a value between 0 and 100:
0-20: Fear level. In this case, a great panic and fear prevails in the market. Prices generally tend to decline.
Between 20-40: More fear. The market is still low, but it could be a little more stable.
Between 40-60: Neutral. There is no particular emotional weight in the market and prices are generally stable. Between 60-80: Level of ambition. It is seen that investors in the market are in great optimism and ambition. Prices generally tend to increase.
Between 80-100: Extreme ambition. In this case, there is a great deal of over-optimism in the market and prices are probably extremely high. This over-optimism can often result in a correction or pullback.
Crypto Fear & Greed Index can be used as an indicator to assess the emotional state of the market, but it is not enough to make an investment decision on its own. It is recommended to perform a more comprehensive analysis by using it together with other fundamental and technical analysis tools.