Seeing Bitcoin rise by 2.23% today, many friends asked me: "Why is the price rising, but the Fear and Greed Index is only 11, still in extreme fear?"

This is actually a very interesting phenomenon! The Fear and Greed Index does not only look at price fluctuations; it is a comprehensive indicator that includes data from multiple dimensions such as market volatility, trading volume, social media sentiment, surveys, etc.

Just like today BTC rose from $65,998 to a high of $68,589, which seems good, but the overall market sentiment remains cautious. Why? It could be:

1️⃣ Although the increase is 2.23%, the trading volume is only 1.49 billion USDT, indicating low participation; people are still observing.

2️⃣ The volatility reached 3.93%, and the market is still relatively unstable.

3️⃣ The funding rate of -0.0028% is close to neutral, and there is no obvious bullish frenzy.

It's like getting 80 points on an exam, which is a good score, but if you usually score 90 points, you would still worry about your declining performance. The market is the same; a short-term rise is not enough to reverse the overall cautious sentiment.

So don't just focus on the price; learn to understand these combinations of indicators to make a more accurate judgment of the market's true situation. Remember: prices can lie, but data cannot.

#BTC #Binance Square #Fear and Greed Index #Market Sentiment