Topic: Fear & Greed Index and Bitcoin Price Chart of last week (Read 238 times)

No wonder, here another article about it: https://cryptoslate.com/crypto-investor-sentiment-hits-extreme-greed-levels-for-first-time-since-2019/

The scammers to their best to hype the next crappy coin to "moon it to the lambo" and all those speaking triggers more and more greed in uneducated people.

It doesn't. It just allows you to see extreme lows and extreme highs that could be good points for buying or selling.

I watched it in this last bear market for a few months and as we were at the bottom it was showing extreme fear but the next day it still was extreme fear and next week the price was even lower and we still had extreme fear so it only gives you a general idea about what's going on. We can be in extreme fear or extreme greed for many days.

I also think the same, do the Fear & Greed Index really determine the Bitcoin price? I am not really sure about it, I mean It may be just a coincidence. Then, in the future, we cannot determine the Bitcoin price chart with the Fear & Greed Index again. On the other hand, we also don't see enough explanation about the source from OP whether it can be trusted or not. For me, OP should explain it first to make sure that people can trust what OP stated above.

unless you are a day trader you have made a huge mistake.
and as a day trader talking about one sell among dozens doesn't make any sense to be honest with you. and i am wondering since you are talking about your sell at the peak why aren't you also talking about your buy at the dip? unless you made another mistake and forgot to buy and now price is back up again?

The uptrend motion we call it Greed Index? Well, I'm not sure about that because people aren't making a stupid decision to sell it but rather to hold. I don't believe this serves as an important indication that needs to see. If people will keep buying it means that they are greedy but if people will sell- it was a fear indication.I'm not sure how it buy the attention of everybody.

I didn't get it too. And we don't know where these data are coming from, (needs source).

I think the fear and greed index isn't a perfect prognosticator of the BTC price. After all, it is a lagging indicator, which means it doesn't have much utility as part of a technical analysis attemp.

I think it's a good indicator of the current state of things, but not really sure how you're supposed to use the indicator as part of your trade decisioning.... Anybody care to explain?

all i have seen from this index was people analyzing the past. you can clearly see it in OP too. i have yet to see someone use this to predict the direction that market can go in future or even near future.
it also seems to me to be a very new analysis with very little merit.

The market is very subjective though, perhaps not to those who manipulated it, right?

Data in every indicators may be considered as partly or mostly subjective. Fear and greed data is one among them. One of the reasons is that the market is composed of rational and irrational traders which generally be considered market working on each traders emotion and irrationality price movement as whole. Sounds ridiculous? Take a look, if you think you made better decision but ends up lossing then that is rational, on the other hand, someone who trades without really thinking or feeling good at it mostly winning, that is irrational. But to think you are winning, its good right? This may be very frustrating but that is usually what happened. But that is of course if you hadn't do your research.

Another example, if someone sees it as security for long-term investment, we can't say that this is bad for long-term because it may either the market rides that tide or they are against it.

Although the real conclusion is that data like "fear and greed"  has been always subjective; everyone becomes irrational in making better decisions especially if it talks about money and wealth. Further, this is caused by too much market preservation that even market manipulations will make the market irrational.

I seriously wonder how do they quantify the a most common human emotional quotients like feed and greed!! What mathematical formula goes behind it? One way to capture is through mass survey but it doesn't look like a result from a survey.

I am interested to know because human emotional quotients are usually not quantifiable! Bitcurate is not only doing it but also presenting it to the community! It may very well be a hoax and nothing else! 

We can't sum it up since there are also sellers who are just riding the sentiments but not because of fear but because of good timing.

Skills that they are using to earn more from this market, there are people / traders who knows how to play along this business, they are not being count to this logic.

There are similarities but not as always, as there are different perceptions and opinions
in terms of how to adopt and analyze the market situations.

The thing is that it's probably a circle in definition and thus useless data. We assume that fear is associated with selling and calculate the fear by the amount of selling. So of course 'fear' would correlate with the price going down, but this can only be established post factum the way I see it, and if something cannot be used to make predictions, it's just a hypothesis. Then again, I've been long enough to make up my mind on whether TA is a thing and whether there's any way to predict the price of Bitcoin in any useful way. I believe there is not. I mean, one can predict that Bitcoin won't cost $15k tomorrow with a high degree of certainty, but this is the kind of prediction I don't find useful. As for some sudden price changes, maybe it's possible to get a bit ahead by reading big news right when they appear, but this would require a lot of time and might be useful only a few times a year.

this is actually very subjective data. i dont think we will see a technical explanation about this. this method  (more sell = more fear, more buy = more greed) doesnt add up to reality. because more sell doesnt always mean that people are in the fear side of things, some are selling because they really need their funds and they just want to sell it. i'd say, this parameter is not so mathematical or scientific. are we going to see a better mathematical equation for this type of index?

how exactly does such thing get determined? is the data even reliable?
i also share the same sentiment that this fear & greed is something like rsi and other technical stuff. more sell = more fear, more buy = more greed. and then you got a self-fulfilling prophecy.

Where do we base the measure between extreme greed, and extreme fear? We can also base over-bought and over-sold through the RSI as a measure.

OP, can you post price, and Fear & Greed, and RSI in one chart?

it is weird "index" for sure and to me it makes no sense at all but it is something that was defined somewhat recently and the way it is defined it makes even less sense if measured in long term since it is mostly something a day trader would be interested in and works based on short term market fluctuations.

I'd be interested in monthly/quarterly and maybe yearly charts if you could post those or a link to them on your site.

I think it's expected the two are correlated and also that the fear:greed ratio didn't reverse until the price started to trend back up imo this seither speaks quite a bit about this space or about the index itself...

You can easily realize that Bitcoin price is highly correlated with the fear and greed index. Check the last week's index and BTC price from the chart below!

Fear and Greed index value of 0 means "Extreme Fear" and the value 100 represents "Extreme Greed".

🚀 Get real-time Fear-Greed index and much more analytics- https://bitcurate.com

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