The market is psychology and mathematics. Thepsychology is responsible for overshooting and extreme price movements.

What is Fear and Greed Index?

The bitcoin Fear and Greed Index is an indicator that measures the emotions of investors in the crypto market. The index can fluctuate between 0 and 100 and is displayed graphically like a speedometer. Zero means "Extreme Fear", while 100 means "Extreme Greed". The factors including in the index are:

1. Volatility (25 %)

2. Market Volume (25%)

3. Social Media (15%)

4. Surveys (15%)

5. Dominance (10%)

6. Trends (10%)

#source: https://alternative.me

#source:https://coinmarketcap.com/

This can be clearly seen in the two pictures. For example in Julie 2019 the Bitcoin price has reached its highest value at 13.404 USD and Crypto Fear & Greed Index was almost 95, whereas in March Bitcoin has its lowest price at 5.900 USD and the Crypto Fear & Greed Index is now 12.

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