A brief introduction to cryptocurrencies! A summary of the historical trend of Bitcoin and the corresponding situation when the FGI Fear and Greed Index reaches above 90:
#Bitcoin#FGITerror and Corruption Index#MarketAnalysis
😜Here are the details:
1. Historically, the time points when FGI reached above 90 and subsequent price trends😏
• December 2017: The FGI index exceeded 95🎯, and the price of Bitcoin approached the high of US$20,000 for the first time💰, and then entered a bear market, falling directly to below US$3,000 in 2018😭.
• April 2021: FGI reached 91, Bitcoin was around $64,000, and then fell sharply to $30,000😖.
• November 2021: FGI breaks 90 again👏, Bitcoin hits an all-time high of $69,000🎉, and then quickly falls into a bear market😰.
• June 2023: The FGI index is close to 90, and the price has adjusted after failing to reach a new high 😕.
2. FGI price trend characteristics after 90s😕
• Stage top signal: After FGI exceeds 90, the price will peak and pull back in the short term😖.
• Large volatility: Extreme greed can cause large market fluctuations, and the price adjustment can reach more than 30%😲.
• Sentiment and trend divergence: If the price does not reach a new high with a high FGI, it may be a sign of market momentum exhaustion😕.
3. Technical indicators and market behavior analysis🧐
• Overbought area: When the FGI is extremely high, the RSI indicator often enters the overbought area (above 70), indicating that the market is overheated🔥.
• Volume increase: Usually the trading volume is high, but the decline in trading volume after the price surges may indicate the risk of adjustment😕.
• On-chain data support: such as increased selling by miners and a decrease in large addresses, which often coincide with FGI highs😃.
4. Strategic recommendations 💡
• Take-profit strategy: When FGI exceeds 90, reduce your position appropriately or set a stop loss to prevent a sharp pullback😜.
• Dynamic adjustment: Combine other indicators (such as on-chain activity) to determine whether there is further upward momentum😏.
• Psychological hedging: High FGI reflects market optimism. Investors should make calm judgments and avoid chasing high prices.
5. Data analysis results 📊
• After FGI reaches 90, the probability of price peaking within 1-2 weeks is over 70%😮.
• The average retracement is 25% - 40%😲.
• If FGI stays at a high level for a short period of time (such as falling within a few days), it may be a short-term top signal😏.
The above content is for reference only and does not constitute investment advice.
