The index of fear and greed increased by 390%

With the rapid growth of cryptocurrencies and BTC, there are also some concerns. BTC is very close to breaking the historical high. Will he succeed or will we see a short-term correction? The index of fear and greed indicates that it is!

BTC is driven by an index of fear and greed

Index of fear and greed, the so-called The “Fear and greed index” has risen in the last three months about 350%. With such values, we have been used to short-term corrections in the past.

Graph for the Index of Fear and Greed. Source: Alternative.me

The period from July (was 20) to 13 October meant for this index 390% an increase and attainment of 78. 0 is defined as extreme fear and a value of 100 is, conversely, extreme greed.

Index of fear and greed. Source: Alternative.me

The mood in the market is currently clear – Investors are flocking to trading and many fear that they will miss the opportunity to buy BTC. In these situations, the index can be used to measure any emotional reactions and assess the mood in the market.

Will we see a correction?

The index is currently clearly outnumbered by greed. In this case, we may see short-term correction. As soon as the index approaches the value 100, a significant sale is expected, which will logically pull the price down. We experienced similar situations in December 2017 and January 2019. There was always a massive slump.

The index works with a combination of data such as volatility, social media, or Google search trends. It then evaluates the results into an index that allows us to see what the mood in the market is.