2/2 The best way to do this is to ignore the narratives and focus solely on the data.
I highly favour on-chain data, which is generally reliable.
Here are a few examples to help you with your own analysis!😉🤔
#₿itcoin #₿TC #On-Chain #Crypto #Market

8/8
➡️ During uptrends :
Falling sentiment may indicate a good moment to enter long, using higher leverage for a shorter-term trade — especially when others are hesitant.
Source: @Darkfost_Coc
#₿itcoin #₿TC #On-Chain #Crypto #Market

7/8
To sum up :
➡️ During corrections :
Rising sentiment can signal a good time to consider a long entry, with less leverage, aiming for a mid to long-term strategy.
#₿itcoin #₿TC #On-Chain #Crypto #Market

6/8 Another key point when the price is rising but the sentiment indicator is sharply declining (as we see today), it may still present good opportunities, as few traders seem willing to go long, reducing competition and risk of overcrowding.
#₿itcoin #₿TC #On-Chain #Crypto #Market

5/8 The same thing happened around April 6, when BTC reached $76 000.
Entering a long position at those levels turned out to be a smart move.
#₿itcoin #₿TC #On-Chain #Crypto #Market

4/8 For example, at the beginning of March, when BTC hit $78 000, the indicator showed strong bullish sentiment among top traders, yet the Fear and Greed Index was in extreme fear territory (between 10 - 20).
#₿itcoin #₿TC #On-Chain #Crypto #Market

3/8 What's interesting is how this sentiment often moves in the opposite direction of the Fear and Greed Index.
#₿itcoin #₿TC #On-Chain #Crypto #Market

2/8 It also factors in funding rates.
When the indicator rises, it signals growing confidence among leveraged traders. When it drops, it suggests reluctance to go long.
#₿itcoin #₿TC #On-Chain #Crypto #Market