As indicated by Justin Kwo, an analyst director from Bexplus, Cryptocurrency trading is a game of nerves and it cannot withstand the emotional behavior. Traders keep on changing their minds with the sudden and strong market fluctuations. This behavior reflects their psychological instability and prevailing sentiment in a particular time zone. However, in the Bitcoin market, traders’ emotions will determine their trading behaviors, which, therefore, affects the future trend of Bitcoin.
So, what is Fear and Greed Index?
Alternative.me has the most well-known and respected Bitcoin fear and greed index.
- Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.
- When Investors are getting too greedy, that means the market is due for a correction.
To make it precise:
- When the index drops below 20 it indicates extreme fear.
- When the index rises above 60, it indicates extreme greed.
The result of Fear and Greed Index is calculated from the following aspects:
Volatility: the program marks wider fluctuations as a sign of fear
Market volume: if buying volumes increase significantly, the greed levels rise, too
Social media: the client monitors, gathers and counts posts on various hashtags, to see how many interactions they receive over certain time-frames
Dominance: when Bitcoin dominance rises, it indicates an increasing level of greed, and vice versa, when the dominance shrinks, it means that people get scared to invest in BTC.
Trends: the program pulls Google Trends data for various Bitcoin-related search queries and crunches those numbers, especially the change of search volumes.
Fear and Greed Index Signals A Bull Recently
From the picture below, we can see that in the past 2 months approximately, the crypto Fear and Greed Index has been between “Extreme Fear” and “Fear” degrees. Amid the coming halving as well as Bitcoin has nearly doubled since the extreme low set back in mid-March, showing that this very well could be the disbelief rally is coming which may surges to new highs.
Take Advantage of Market Fluctuation and Double Profits
Though the Fear and Greed Index may indicate a bullish trend, there will be a lot of fluctuations. Make profits on these fluctuations, you can make great fortune before BTC skyrockets to $20,000 again.
Bexplus is one of the world-leading futures exchanges in the cryptocurrency area. It’s registered in Saint Vincent and the Grenadines, in late 2017. Bexplus offers 100x leverage perpetual contracts across all major trading pairs including BTC/USDT, ETH/USDT, LTC/USDT, XRP/USDT and EOS/USDT. With 100x leverage, traders can open a “short” or a “long” position of 100 BTC with only 1 BTC used as margin. If BTC price increases or decreases 10%, the profit would be 10 BTC, whereas without leverage, the profit would just be 0.1 BTC.
Win Up to 10 BTC in Bexplus
Up to 100% FREE BTC bonus will be sent to clients who deposit and trade futures contracts in Bexplus.
For example, deposit 10 BTC, you will get 20 BTC credited in your account.
For more details: https://www.bexplus.com/activity/cash_back
One of the richest traders on the planet Warren Buffet said, “Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.”
Remember the quote, you can make successful trades in Bexplus easily!
The post Fear & Greed Index Suggests A Bull in the Bitcoin Market? appeared first on Global Coin Report.
Read more at https://globalcoinreport.com/fear-greed-index-suggests-a-bull-in-the-bitcoin-market/
Globalcoinreport.com/ is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
