Today we hit 79 on the Fear and Greed Index which puts us in the "Extreme Greed" category. Last month we were at "Extreme Fear" at a value of 22. This is why I'm not worried.

On the website https://alternative.me/crypto/fear-and-greed-index/ they analyze the current sentiment of the Bitcoin market and crunch the numbers into a simple meter from 0 to 100. They use a mix of different sources such as volatility (25 %), market momentum/volume (25%), social media (15%), surveys (15%), dominance (10%), trends (10%) to come up with the final number.

The Numbers:

Today: Extreme Greed 79

Yesterday: Extreme Greed 76

Last week: Greed 72

Last month: Extreme Fear 22

This may seem alarming but looking back at our last ATH we still have some ways to go before there is any need to be worried in my opinion.

Fear and Greed 1 Year Chart

If we have a glance at the chart we can clearly see that we have hit upwards of 90 on this metric multiple times and it stayed there from early November to mid January. Keep in mind that peak greed during this time didn't even line up with the BTC peak so don't just use this one chart to make your decisions!

So i'm not worried but when we start hitting values above 90 this is when i'll start looking to maybe sell a very small portion of my portfolio. Until then let's all enjoy the ride!