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1) Can we now all agree the Crypto Fear & Greed Index is not a good estimation of the current sentiment and definitely not a top indicator?
We’ve had people shorting $BTC all the way up, fundings go negative and sentiment being salty, with the index showing “Extreme Greed”.
We’ve had people shorting $BTC all the way up, fundings go negative and sentiment being salty, with the index showing “Extreme Greed”.
2) This is the way i have been looking at it:
We can all agree that the top in 2017 was the highest hype and euphoric sentiment we’ve ever seen. So this should realistically be seen as a 100 score on the Index. Since this is the maximum we’ve experienced, ever.
We can all agree that the top in 2017 was the highest hype and euphoric sentiment we’ve ever seen. So this should realistically be seen as a 100 score on the Index. Since this is the maximum we’ve experienced, ever.
3) Now look at last weeks, were we anywhere CLOSE to those levels? Did you have all your family and friends ask you about Crypto? Was it the only thing you heard around you when doing groceries?
Not even close. Not many people even seemed to notice $BTC was sitting at an ATH.
Not even close. Not many people even seemed to notice $BTC was sitting at an ATH.
4) The indicator seems to work well until it hits that ceiling around the 80-100 level which it hit way to early in my opinion. This way it has no room to go higher even though, like i mentioned, we're definitely not at the highest sentiment we can be.
5) So be careful basing your analysis on this indicator. It’s been a bearish narrative for a lot of people calling tops on $BTC for weeks.
Realistically the index should have been sitting at around the “Neutral” levels now moving into “Greed” after breaking the $20K level.
Realistically the index should have been sitting at around the “Neutral” levels now moving into “Greed” after breaking the $20K level.
