Recently, the sentiment indicators in the Crypto Assets market have once again attracted the attention of investors. Not long ago, the market sentiment was in the greed range, but with the recent rounds of price falls, the index has returned to a neutral level of 48.

This rapid shift in emotions indicates that the market is unlikely to reach a state of extreme greed in the short term. If extreme greed occurs, it is usually viewed as an ideal time to take profits.

There is a view that a simple trading strategy can be formulated based on this indicator: sell when the index exceeds 70, and buy when it is below 20. This method may only require operation twice a year. However, does this strategy really guarantee stable profits?

It is worth noting that while sentiment indicators can provide references for investment decisions, a single indicator cannot fully predict market trends. The crypto assets market is influenced by various factors, including technological developments, regulatory policies, and macroeconomic conditions, all of which can have a significant impact on prices.

Therefore, when investors develop trading strategies, they should not only follow market sentiment but also comprehensively consider multiple factors to conduct a thorough market analysis. At the same time, establishing a risk management mechanism and reasonably allocating assets are essential to achieving long-term success in this highly volatile market.