When the index is 27, the market is always eerily quiet.
The aftermath of the liquidation of 210,000 people last night has not yet dissipated, and today someone has thrown in 300,000 at the 86,000 position. You might think this is giving away money, but looking back at the records from November 2022—when BTC plummeted to 15,500, the fear index was only 10, and various influencers were predicting a "countdown to zero."
At that time, a guy invested 100,000. Half a year later, he cashed out 200,000 and left. Those who mocked his account back then only dared to move the mouse after it reached 100,000.
He later said to me: "I don't bet on price fluctuations; I bet on mass panic."
The Fear and Greed Index is something that 90% of people have seen, but less than 5% actually use it as a trading signal. Most people just take a quick glance at the numbers and then continue to be led by the candlestick charts.
The interval division of this set of indicators is actually very clear: 0-25 is the extreme fear zone 25-45 is the ordinary fear zone 45-55 is the neutral emotional range. 55-75 enters the greed zone 75-100 is the peak of frenzy
Now? 27.
Compare the historical coordinates: → In November 2022, when BTC fell below 15,500, the index was 21 - that was recognized as the bottom. → In August 2024, when BTC breaks through 50,000, the index is 26——it's also a bottom-buying opportunity.
Those who entered at index 21 will see their account multiply by 6 times when reaching the peak of 108,000 in October 2024. Those who entered at index 26 also waited until 108,000, which resulted in a 2x gain.
But every time a low point appears, the public opinion arena always has the same set of remarks: "This drop is going to reach 10,000" "The bear market will last for another three years" "Run fast"
Those who believed in these voices later chased the price up at high positions.
So when the index drops to 27, it is not a risk alert, but a cyclical entry signal. Of course, this does not mean to go all in, but at least it can be the beginning of a phased layout.
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When the index is 27, the market is always eerily quiet.
The aftermath of the liquidation of 210,000 people last night has not yet dissipated, and today someone has thrown in 300,000 at the 86,000 position. You might think this is giving away money, but looking back at the records from November 2022—when BTC plummeted to 15,500, the fear index was only 10, and various influencers were predicting a "countdown to zero."
At that time, a guy invested 100,000. Half a year later, he cashed out 200,000 and left. Those who mocked his account back then only dared to move the mouse after it reached 100,000.
He later said to me: "I don't bet on price fluctuations; I bet on mass panic."
The Fear and Greed Index is something that 90% of people have seen, but less than 5% actually use it as a trading signal. Most people just take a quick glance at the numbers and then continue to be led by the candlestick charts.
The interval division of this set of indicators is actually very clear:
0-25 is the extreme fear zone
25-45 is the ordinary fear zone
45-55 is the neutral emotional range.
55-75 enters the greed zone
75-100 is the peak of frenzy
Now? 27.
Compare the historical coordinates:
→ In November 2022, when BTC fell below 15,500, the index was 21 - that was recognized as the bottom.
→ In August 2024, when BTC breaks through 50,000, the index is 26——it's also a bottom-buying opportunity.
Those who entered at index 21 will see their account multiply by 6 times when reaching the peak of 108,000 in October 2024.
Those who entered at index 26 also waited until 108,000, which resulted in a 2x gain.
But every time a low point appears, the public opinion arena always has the same set of remarks:
"This drop is going to reach 10,000"
"The bear market will last for another three years"
"Run fast"
Those who believed in these voices later chased the price up at high positions.
So when the index drops to 27, it is not a risk alert, but a cyclical entry signal. Of course, this does not mean to go all in, but at least it can be the beginning of a phased layout.
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