Greed just flashed across crypto’s dashboard. The Crypto Fear & Greed Index jumped to 60, yanking sentiment out of Neutral and into Greed. That’s the point where momentum can accelerate—and where late entries get punished. If you’re trading this market, here’s how to exploit the tailwind without becoming exit liquidity.

What just changed

The daily Crypto Fear & Greed Index moved to 60 (Greed), reflecting stronger risk appetite across digital assets. The score aggregates: - Volatility and momentum/volume (each 25%) - Social sentiment (15%) - Surveys (15%, currently paused) - Bitcoin dominance (10%) - Google Trends (10%)

In short: higher participation, improving price action, and growing search/social interest.

Why this matters for traders

Greed regimes often precede: - Continuation in leaders as capital chases winners - Rotation into higher-beta alts once BTC stabilizes - Overextension and abrupt pullbacks as FOMO peaks

Knowing where we are in the sentiment cycle helps you time adds, trims, and rotations—and avoid chasing tops.

How to trade the Greed zone

• Lean with momentum, manage risk tightly: Ride strength in leaders, but reduce position size and tighten stops as extension increases.
• Stage profits: Pre-define trim levels on strength (e.g., +8–15% from entry) to bank gains while keeping core exposure.
• Buy dips, not green candles: Use pullbacks to rising 20/50D MAs or prior breakout levels instead of breakouts after multiple up-days.
• Fade euphoria, not strength: Look to de-risk when funding, OI, and social sentiment spike together.

Key metrics to watch this week

• Funding + Open Interest: Rising together = crowded longs; trims or hedges warranted.
• BTC.D (Bitcoin dominance): Falling with stable BTC = alt rotation on; rising = flight to quality, reduce alt risk.
• Realized/Implied Volatility: Surging vol often precedes sharp mean-reversion.
• Breadth: Are more coins making new 20D highs, or just a few? Narrow leadership warns of fragility.
• Google Trends & Social: Spikes confirm attention—great for momentum, risky for late entries.

Levels and tactics

• BTC: Respect prior breakout/support zones; dips to rising MAs/VWAPs are higher-probability entries than late breakouts.
• ETH and majors: Track ETH/BTC; sustained strength there often precedes broader alt risk-on.
• Alts: Focus on coins with rising volume, clean breakouts, and strong relative strength; avoid illiquid pumps.

One actionable plan

• Define your bias: While Greed persists, stay net long but cap max leverage and single-coin exposure.
• Systematize trims: Take partial profits into strength; roll stops to breakeven on remaining size.
• Hedge smartly: If funding/OP momentum overheats, add light index or BTC puts instead of nuking winners.

Common mistakes to avoid

• Chasing parabolas: Wait for first pullback/flag after an explosive move.
• Ignoring liquidity: Size positions based on average daily volume; don’t get trapped in thin alts.
• Over-concentration: Diversify across 3–5 uncorrelated setups to smooth equity curve.

Bottom line

A Greed = 60 print can be profitable for disciplined traders. Ride momentum in leaders, harvest strength with pre-set trims, and let data—funding, dominance, breadth—tell you when to rotate or hedge. Exploit the wave, but respect the undertow.

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