Bitcoin: Fear and Greed Index

Hey everyone and thanks for jumping back Into the cryptos today we're going to Talk about Bitcoin and we're going to be Looking at the fear and greed index if You guys like the content make sure you Subscribe to the channel give the video A thumbs up and also check out the sale On into the cryptographers premium at Into the just as a Reminder you can find the website for The fear and read index here I'll Provide a link to it in the description Below if it is an index that a lot of People use to sort of gauge whether the Overall Market sentiment is fearful or Greedy and the reason why we talk about This is because also the general idea is That you've you sell into greed and you Buy into fear now it's interesting Is if you only if you sold all your Bitcoin anytime the fear and greed index At 90 then that would not necessarily be The best strategy you can see an example Here in 2020 where Bitcoins fear and Greed index was at 90 when the price was At 15.62 K and this was just before the Price rallied to sixty four thousand Dollars just a few months later but There is a way we can kind of clean this Up you could apply a moving average to It now a moving average is of course by Definition are going to be lagging Indicators but if you applied say a 30-day EMA to the fear grade index it

Would have at least allowed you to not See the 9d level on the fear and greed Until the price of Bitcoin were just a Bit higher let's say 22 to 23 000 so it Would have occurred eight thousand Dollars higher than previously you know Than we previously set If you looked at something like say a 14-day EMA you can see that it would Have occurred of course it would have Occurred slightly sooner so the whole Idea is to essentially come up with a Simple moving average that works best For you now a 30-day moving average you Can see that the the fear and greed Index would have reached that 90 level Closer to around 18 to 19 000 so in a Bull market characterized like the last One that we saw selling all your Bitcoin Just because a few hundred index hit 90 Would not have necessarily been the best Strategy to misunderstand that Um but As it spent a lot of time up here and Then started to put in lower highs that Might have been a more interesting Signal to to pay attention to right So like for instance if you look in 2019 The fear and green index was putting in Higher lows and higher Highs but then at Some point in 2019 you can see that it Peaked and then it sort of put in a Double top it's a slightly higher it was A slightly lower high but the fear greed

Index dropped a lot so this first hide The figure index was at 95. now this is An example we're selling it all above 90 Would have actually worked out quite Well this is also in the prehabbing year But the second Peak that occurred just a Few weeks later at more or less the same Price was a fair ingredients of 84. The next Peak that occurred at just you Know a couple thousand dollars below This one the few ingredient index was at 66. so we were seeing some type of You know the the fear green index was Basically putting in lower highs while While Bitcoin was also putting in lower Highs And and in one of these cases it wasn't Really that much of a lower high it was It was sort of almost like a double top That's an interesting way to look at the Market you can look at it over here and See that the fury the fear and greed Index was just sort of hanging around These eight this 80 to 90 level for a Long time and then you know came back up To this level but once we hit that 58 000 level the feed index from that point On was just putting in lower highs and So that might actually be a better way To use this metric to see that okay if The price of Bitcoin is slowly pushing Higher but the fear and greed is is Actually going lower it means that Social interest is actually starting to

Wane and we're not seeing that same type Of fomo necessarily that we saw on the First on these first rallies and so if People are not coming in as much into The market if that if that fomo doesn't Exist as much anymore then it could be a Sign that the the rally is fizzling out So you can see that occurred of course In in um in 2019 and in in 2021. what we See today we've seen higher lows and Higher highs however the highest the Fear grade index got at least so far in 2023 was around 69. you can see that we Had we did push higher of course later On but the fear and greed index was at Only 64. so if you know if I've seen a Lot of people or a lot of people that Are very bullish on bitcoin for the Second half of the year and I don't Necessarily share in that optimism I Mean I have said that the highest I Could see Bitcoin going this year is 35 000 it is still possible but the further We get into the year I think it's Becoming less and less likely especially Because we're in that August to September time frame which tends to Correspond to a risk-off environment in Equities which typically pushes Bitcoin Below the bull market sport band that's What we've seen every prior cycle Bitcoin fall below its 20 week SMA in August or September of the prehabbing Year we are at least singing some

Confluence in the fact that the fear Greed index is also putting in Potentially some lower highs as well and Historically that sort of marked a Transitional period now you can see that In 2021 it put in lower Highs but the Price of Bitcoin was putting in slightly Higher highs right like it was it was Only slightly higher it's kind of like How in April We put in a high and and Um you know we came back down and yes we Technically did go higher on on some of These moves here but it was only very Marginally higher and the fearing Indexes put in a lower high so I guess The question is is you know do all Future moves just end up being a lower High on the fear greed index which is a Possibility considering that the social Risk that we previously talked about has Also been in in a downtrend so if you Are bullish going into the end of the Year then I imagine one of the things You would want to see would be to see The fear and greed index start printing In the 70s if the fear and read index Can go into the 70s then that would be a Sign that Um that this would be you know finding a Higher high for the fear and green index However if you just constantly see it Putting in levels below 70 that would be Indicative of just interest in the space

Slowly waning so just something to think About you can also look at this by color Coding it and I think one interesting Thing to do is to only highlight like The low levels Um sorry like the zero to ten and maybe The 10 to 20 and then also the 80 to 90 And 90 to 100 right So if you only ever bought uh when the Fair ingredient X was between 0 to 20 And only ever sold when it was between 80 to 100 you would generally be doing Pretty well With that said there would be times like Late 2021 where if you were buying into That uh it was not a good not a good Um not a really great time to do so Because we saw you know what came not Too long after it just like over here in 2018 if you were buying all these dips At some point you would have watched the Price go down another 50 and you would Have been like well why didn't I just Wait Um and of course you can apply moving Averages to it and and that might might Help clean it up a little bit right so If you look at it like with a moving Average it cleans it up a little bit As you can see so you wouldn't have you Wouldn't have bought all these dips when You met about a little bit here and then A little bit more here and then some Here and you would have been doing

Pretty well as it came up into these Regions buying some here Would have worked out even though it Wouldn't have gone back up into those Levels when you take a 30-day SMA and of Course buying here wouldn't have Necessarily worked out immediately but We are actually at the same prices more Or less as where we were back over here So hopefully you guys enjoyed this video Just another way to look at the fear and Green index if you guys like the content Make sure you subscribe to the channel Give the video a thumbs up and again Check out the sale on into the Cryptiverse premium out into the see you guys next time Bye


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