What is the Bitcoin Fear & Greed Index?
The Bitcoin Fear & Greed Index is a tool that measures market sentiment regarding Bitcoin and the broader cryptocurrency market. It uses various data points to gauge whether investors are feeling fearful or greedy, which can indicate potential market movements.
The index ranges from 0 to 100:
0-24: Extreme Fear
25-49: Fear
50: Neutral
51-74: Greed
75-100: Extreme Greed
Typically, when the index indicates extreme fear, it may suggest that the market is undervalued, while extreme greed can signal that the market is overvalued. Investors often use this index as part of their decision-making process to time their investments or to gauge market trends.
What is my Stradegy?
Everyday I will track buying $20 dollars of Bitcoin vs Purchasing a percentage of Bitcoin based on the fear and Greed Index.
I will be using Dollar-Cost Averaging (DCA)
Consistent Buying: Regardless of the index readings, invest a $20 fixed amount of money at daily intervals. This strategy mitigates the risk of trying to time the market based on fear and greed.
Vs
Trend Analysis
I will Combine Using the Fear & Greed Index to validate my buying decisions. Example if the Fear and Greed is 30 then I will buy 70% of the $20 and keep the other 30 percent in usdt. On every 7th day I will also purchase based on the Fear and Greed index using the usdt reserve!
Here are my totals on Day 7 of the Bitcoin Fear Greed Index Stradegy!
Bitcoin Price $65673.10
Bitcoin Purchased Today $20 = 0.0003045
Total Bitcoin Purchased 0.002235
Value $146.53
All time profit 6.53
Fear and Greed Index 45
Bitcoin to be purchased $11
Bitcoin Price $65673.10
$11 Bitcoin = .0.0001523
Total Bitcoin Purchased .00127
Usdt In reserve $59.60
Value = $143.12
All time profit 3.12
Week 1 Bitcoin bought today 32.78 .0004991
new reserve 26.82
new Bitcoin total .001769
Always buy Bitcoin 🚀
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