๐ FEAR AT 16 โ THE MARKET IS IN EXTREME FEAR
The market has entered a phase of extreme fear as the Fear & Greed Index drops to 16.
Looking back, during March and April, when this index also fell below 16, BTC formed short-term bottoms in the 7xโ8x zone before making a solid recovery.
In previous cycles, during deeper downtrends, the Fear Index even dropped to 10 and stayed low for an extended period.
This shows that extreme fear does not guarantee a bottom, but it clearly reflects the emotional state of the majority.
The more fearful the crowd becomes, the more likely they are to panic-sell โ making the market โlighterโ and easier for bigger players to accumulate.
On the other hand, when the Greed Index climbs above 80, the market is typically entering a distribution phase, where tops are formed and smart money begins to exit.
The marketโs timeless mechanism:
๐ Market makers buy the crowdโs fear and convert it into greed โ then sell it back at a higher price.
