Індекс страху та жадібності

Bitcoin(BTC) Fear and Greed Index is a sentiment analysis tool designed to capture the emotional behavior of investors in the cryptocurrency market. Based on multiple weighted indicators—including price momentum, volatility, social media sentiment, trading volume, Google Trends, and market dominance—this index scores the market on a scale from 0 (Extreme Fear) to 100 (Extreme Greed).

In highly volatile and speculative markets like crypto, investor emotions often dominate rational analysis. During bull runs, greed can lead to irrational buying driven by FOMO (Fear of Missing Out), while bear markets can trigger panic selling driven by fear. This index helps investors recognize such emotional extremes and avoid reactionary decisions.

Traders and investors use the Fear and Greed Index to guide their strategies in several ways:

- Identify Market Tops or Bottoms: Extreme greed (above 75) may suggest overbought conditions and a potential market top. Extreme fear (below 25) could indicate oversold conditions and a possible market bottom.

- Support Timing Decisions: The index helps refine buy/sell timing by revealing the overall market mood. For example, value investors may consider buying when fear dominates and others are selling.

- Trend Confirmation: Combined with price charts or technical indicators, the index can confirm trends. If price is rising but the index is neutral or fearful, it may suggest weak momentum or hidden bearish sentiment.

- Risk Management: By being aware of emotional extremes, traders can adjust their position sizing, take profits, or tighten stop losses.

While the index is not a crystal ball, it provides useful psychological context for market behavior—especially when paired with technical and fundamental analysis.