The Fear and Greed Index 30DMA has moved down. Historically, when the 30-day moving average fell below the 50th percentile, the price of BTC tended to reach levels that preceded a reversal and a resumption of the uptrend. Currently, the index remains above the 50th percentile. #BTC Key components of the chart:

Black Line (BTC Price [USD]): This is the price of Bitcoin in US dollars for the specified period. It shows how the coin's value fluctuated from a minimum of around $6,000 in 2020 to a peak of $100,000 in 2024, and then sharply dropped. These movements reflect market cycles of ascent, greed, and subsequent declines.

The Fear and Greed Index measures the emotional state of the market based on factors such as volatility, trading volumes, social moods, and the ratio of long/short positions. It ranges from 0% extreme fear to 100% extreme greed. The levels are divided into:
0–25% (Extreme Fear): The market is in panic, traders are selling, which may be a signal to buy (overbought).

25–50% (Fear): Caution and pessimism, local minima are possible.

50–75% (Greed): Optimism and greed, overbought and reversals are possible.

75–100% (Extreme Greed): Euphoria, market overheated, often precedes corrections.

Percentile lines (75th, 50th, 25th): These dotted lines show the key levels of the index where the market is historically overbought (75%), neutral (50%) or oversold (25%). They help traders identify potential entry and exit points.

Moving averages (SMA):
SMA30D (blue dashed line): 30-day moving average index, filtering out short-term fluctuations.

SMA90D ( orange line ): 90-day moving average, showing medium-term trends.

SMA365D (yellow line): 365-day average reflecting long-term sentiments.

Key points for traders:
2020–2021: Growth from fear. In early 2020, the index was in the "extreme fear" zone ( at around 10–20%) when the price of Bitcoin was below $10,000. This was an excellent signal for accumulation — the market was oversold, and the subsequent rise to $60,000 in 2021 confirmed this.

2023–2024: Euphoria and greed. By mid-2024, the index reached 'extreme greed' (80%), as the price of Bitcoin soared to $100,000. This was a red flag for traders: the market was overheated, and a correction was inevitable. The SMA30D and SMA90D crossed above 75%, signaling potential sales or profit-taking.

2025: Fear and Fall. By the beginning of 2025, the index dropped by 40% ("fear"), and the price of Bitcoin. This indicates oversold conditions: traders may consider such levels as potential entry zones, especially if the index approaches the 25th percentile or lower.

How to use a chart in trading:
Entry point search: When the index is in the "extreme fear" zone (0–25%) or close to the 25th percentile, this may be a signal to buy, as the market often bottoms out at such times.

Profit-taking: If the index crosses 75% or higher, especially when confirming SMA30D and SMA90D, this may be a moment to sell to avoid corrections.

Risk Management: Compare short-term (SMA30D) and long-term (SMA365D) trends to avoid false signals. For example, if SMA365D remains above 50%, this may indicate a persistent bullish trend, even during short-term declines.

Current situation (февраль 2025): The index is around 40% – the market is in the "fear" zone, but has not yet reached "extreme fear". The price of Bitcoin has fallen to $20,000, which can be an attractive area for accumulation, but traders should wait for confirmation: for example, if the index drops below the 25th percentile or the SMA30D starts to rise, this will strengthen the buy signal.

This chart is not just a set of lines, but a reflection of the market psychology. Traders can use it to determine sentiments, but always combine with other indicators (such as volumes, RSI) and risk management to minimize losses. Draw your conclusions, but remember: the market is unpredictable, and emotions are just part of the picture.