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The Bitcoin Crypto Fear and Greed Index (CBBI) is a popular sentiment indicator that measures the current market emotions surrounding Bitcoin and other cryptocurrencies. This index ranges from 0 to 100, where 0 represents extreme fear and 100 indicates extreme greed among investors.
Many traders use the CBBI as a contrarian indicator. When the index shows extreme fear, it might signal a potential buying opportunity, as market participants are overly pessimistic. Conversely, when the index displays extreme greed, it could indicate that the market is overbought and due for a correction.
The CBBI product combines multiple data sources including volatility, market momentum, social media sentiment, and surveys to provide a comprehensive view of market psychology. This tool helps investors make more informed decisions by quantifying the emotional state of the cryptocurrency market. |
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