In order to have a general sense of the market’s sentiments, an Index has been created known as the Greed and Fear index that incorporates different variables such as Volume, Momentum Social Media, and others to rate it out of 100. This is done to capture the sentiments of the people and have a general idea about their feelings.
In the past few months, the market has shown highly volatile movement. Even though in the higher time frames we have seen that the price of BTC was consolidating but in the lower time frames we saw a very volatile reaction by the price. As such the greed and fear index was changing very fast too. A month back the index was showing a rating of 60/100. This was extreme greed in the market. A week back the index was at 27/100. This was fear in the market. Every time the price drops below $40k the index goes down as well. Today the Index is at 21/100 which shows extreme fear in the market.
BTC reached its maximum value around the price of nearly 69k before plummeting precipitously. It’s been months, and the market still hasn’t recovered from the damage. People are fearful right now, but they hope that everything will recover and that their holdings will reach all-time highs and return to price discovery.
