The fear and greed index is an indicator that analyzing the price movement, the status of the Bitcoin market is scored between 0 and 100.
0 represents extreme fear, 100 represents extreme greed.
The crypto market behaviour is very emotional. People tend to get greedy when the market is rising which results in FOMO (Fear of missing out). Also, people often sell their coins in irrational reaction of seeing red numbers. Fear and Greed Index, try to save you from your own emotional overreations.
There are two simple assumptions:
Extreme fear, is a sign that investors are very worried. This may be a buying opportunity.
Extreme greed , means that the market can make a correction.
For more information:
