š FEAR AT 16 ā THE MARKET IS IN EXTREME FEAR
The market has entered a phase of extreme fear as the Fear & Greed Index drops to 16.
Looking back, during March and April, when this index also fell below 16, BTC formed short-term bottoms in the 7xā8x zone before making a solid recovery.
In previous cycles, during deeper downtrends, the Fear Index even dropped to 10 and stayed low for an extended period.
This shows that extreme fear does not guarantee a bottom, but it clearly reflects the emotional state of the majority.
The more fearful the crowd becomes, the more likely they are to panic-sell ā making the market ālighterā and easier for bigger players to accumulate.
On the other hand, when the Greed Index climbs above 80, the market is typically entering a distribution phase, where tops are formed and smart money begins to exit.
The marketās timeless mechanism:
š Market makers buy the crowdās fear and convert it into greed ā then sell it back at a higher price.
