Crypto Fear & Greed Index Hits 73, Signals Overbought Market
Crypto Fear & Greed Index has climbed from 70 to 73, entering the Greed zone on the 0–100 scale. The index gauges market sentiment through six inputs—volatility, market momentum and volume, social media trends, Bitcoin dominance, Google Trends data and paused investor surveys. A reading above 70 indicates elevated buying pressure and strong optimism but often precedes market corrections. Traders should watch Bitcoin dominance for capital flows, combine Crypto Fear & Greed Index signals with technical analysis, and enforce risk management measures such as portfolio diversification, profit-taking and stop-loss orders. While the index remains a valuable sentiment gauge, it must be used alongside broader research, regulatory updates and macroeconomic trends to navigate potential overbought conditions.
Bearish
A Crypto Fear & Greed Index reading above 70 signals strong buying pressure and elevated optimism, which historically precede market pullbacks. In the short term, traders may experience bullish momentum as sentiment peaks, but the likelihood of profit-taking and corrections increases. Over the medium to long term, a high greed reading suggests the market is overbought, raising the risk of a downturn before a more sustainable recovery. As a result, the overall impact on Bitcoin price is expected to be bearish once traders react to extreme sentiment levels.