Bitcoin's fear and greed index, where zero means Extreme Fear, and 100 means Extreme Greed, has reached its lowest level since the beginning of February 2018.
Today it is 11, and last Sunday, November 25, after the BTC price dropped below $ 4,000 for the first time since the end of September 2017, this index showed the lowest value of 9 points.
The developers of this tool assume that when the indicator drops too low, as we see today, it may mean that the market is too oversold and at this time the purchase is made to a greater degree.
When evaluating the index (only Bitcoin ), the 5 component is considered in the following proportions:
- Volatility (25%)
- Market momentum / volume (25%)
- Social media (15%)
- Polls (15%)
- Dominance (10%)
- Trends (10%)
