What is Market Sentiment?. Market sentiment captures the crowd’s attitude toward risk—greedy, neutral, or fearful. It shapes momentum and reversals.
How it works
Indicators combine price action, funding rates, positioning, and social data. None is perfect alone.
Why it matters
Sentiment guides timing but should not replace thesis or risk limits.
Common pitfalls
- Treating single indicators as gospel
- Ignoring macro context
- Confusing long‑term adoption with short‑term mood
Quick example
You reduce leverage when funding turns extreme and narratives run hotter than adoption.
See also
- FOMO
- FUD
- Bull/Bear Market
TL;DR: What is Market Sentiment? defined in plain English with practical next steps.
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