Question #481 ·
How has the Fear & Greed Index staying at “Extreme Fear” for nearly two weeks reflected trader cautiousness around Bitcoin’s $88,000 price level?
- Prolonged extreme fear signals traders are hesitant to enter new positions around $88,000 Right answer
- The index at extreme fear means traders are ignoring macroeconomic trends
- Extreme fear shows traders are aggressively buying at $88,000 expecting rebound
Why is this the correct answer?
This is correct because when the Fear & Greed Index stays in extreme fear, traders typically reduce buy orders and avoid opening new positions, reflecting their caution at that price level.