BTC Fear and Greed Index – Bitcoin Sentiments Realtime up to 1 Minute

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BTC Fear and Greed Index 

The BTC Fear & Greed Index is a crypto tool for analyzing what the market is going through. Most crypto traders and investors use the BTC Fear and Greed index to study the market sentiment before entering the market to know for sure if the market is bullish or bearish. It Shows Following Direct Decisive terms:

{STRONG SELL} – The market is experiencing Brutal conditions.
{SELL} – The market is just entering/reviving from its bad time.
{NORMAL} – The market no longer has any Buy/Sell Pressure and acting Neutral.
{BUY} – The market is just reviving/entering its profitable time.
{STRONG BUY} – Market is Experiencing its Golden Time.

The Fear and Greed Index has historically been a reliable indicator for most major crypto traders and investors to learn about mood swings in the cryptocurrency markets. The Fear & Greed Index was initially Invented by CNN for US stock Market.

Volatility (25%)

How is BTC Fear & Greed Index Calculated?

BTC Fear & Greed index is calculated by analyzing these six different factors:
Volatility (25%)
Market Momentum/Volume (25%)
Social Media (15%)
Dominance (10%)
Search Trends (10%)
Surveys (15%)

Volatility compares the current trading price of Bitcoin with the average price of the last 30 days and the last 90 days. The larger the difference, the more volatility shows.

Market Momentum/Volume (25%)

Volume Factors compares the trading volume of Bitcoin over the last 30 days and 90 days. Larger buying volume means Greed, and lower buying volume means Fear.

Social Media (15%)

Social networks play a significant role in the promotion of crypto spaces. This factor i.e. social media looks at what people are saying about bitcoin in the community, tweets, posts, and hashtags. This factor tracks all relevant social media keywords for analysis. Positive statements push the Fear and Greed Index BTC towards Greed and vice versa.

Dominance (10%)

This factor i.e. Dominance measures the dominance of Bitcoin over the total market capitalization of the cryptocurrency.

On average, Bitcoin always covers a dominance of 40-45% of the total capital of the crypto market. Thus, when Bitcoin loses its dominance, the question arises of analyzing whether investors in alternative coins take risks or exit the market.

Taking chances in Altcoins shows Greed. Exiting the market shows fear.

Search Trends (10%)

A higher number of positive Bitcoin queries compared to search engines indicates a Greedy market. But at the same time, negative search volumes like “Bitcoin scam”, “Bitcoin hack”, and “Bitcoin price manipulation” can lead to market panic.

Surveys (15%)

Weekly surveys are conducted with 2,000 to 3,000 crypto people to get a direct market reaction to how they feel. However, it hasn’t been used recently and we hope polls will resume soon. 

How To Read Bitcoin Fear And Greed Index?

{STRONG SELL} – The market is experiencing Brutal conditions.
{SELL} – The market is just entering/reviving from its bad time.
{NORMAL} – The market no longer has any Buy/Sell Pressure and acting Neutral.
{BUY} – The market is just reviving/entering its profitable time.
{STRONG BUY} – Market is Experiencing its Golden Time.

How Does BTC Fear And Greed Index Work?

The Fear and Greed Index is an integrated indicator of many different factors: volatility, volume, social media, dominance, search trends, and polls/surveys.

However, the Bitcoin Fear and Greed Index shows what market investors have done in the past (it could be 1 day before).

All markets, which can be stock markets or crypto markets, operate on only one principle, i.e. 

“History always repeats itself”

And we investors, rely on our past transactions.

However, now the market has grown in such huge capital that large market manipulators have minimal impact on the market and hence the markets sum up the sentiment of the entire crypto market.

Advantages of Fear & Greed Index:

  • BTC’s Fear & Greed Index indicates exactly what the market is going through.
  • The Fear & Greed Index is one of the determining factors for large players to enter or exit a trade.
  • Might not be great for frequent traders, but the Bitcoin Fear-Greed Index is best for long-term investors to buy dips.

Disadvantages of the Fear & Greed Index:

  • The Fear & Greed Index shows what investors have been doing in the past, Not currently.
  • Whenever the Fear & Greed Index shows extreme greed, some investors start Panic selling. Thus, bad for capitalization.
  • The Fear & Greed Index does not update in real-time and only updates once every 24 hours (which is bad for frequent traders). 
  • However, you can view Realtime Bitcoin Fear and Greed Index for upto 1 Minute.

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