The Fear and Greed Index is turning: what does it mean for the market?
I use this indicator to enter positions and take profits, how about you?
The Fear and Greed Index for cryptocurrencies has risen to 38 and sharply rebounded from the lows. It is still in the fear zone, but the dynamics are what matter.
Such a rebound usually indicates that panic selling is weakening, and pressure from forced sellers is decreasing. The market stops falling impulsively and begins to stabilize.
For newcomers, it is important to understand: stabilization is not a reversal. In such phases, prices often move within a range, with sharp local fluctuations. Many make the mistake of perceiving the first rebound as the start of a sustained rise.
Historically, such transitional phases often form before a recovery of the price structure, but they require time and confirmations.
Conclusion
The weakening of fear is a positive signal for the medium-term picture, but risks remain. It is now more important to understand the phase of the market, rather than trying to catch the bottom.
This is not financial advice, but an analytical breakdown of the market.
