I first learned about the "Fear & Greed" index in 2018. If I remember correctly, this indicator examines Stock Price Dynamics (MA), Strength, Breadth and another 4 more factors. The "intrinsic" value is determined by calculating their equal weighted average.

In my opinion, this index can be used well in analyzing regulated equity markets, but it is practically useless for predicting the movements of the global decentralized cryptocurrency market, because it is almost impossible to gauge whether coins are fairly priced or not.

I often watch the Bitcoin mining difficulty chart because I attach more significance to this technical indicator. If the BTC price drops sharply in the near future, the difficulty could fall below 16.78T. This is the level of difficulty that was before mining reward was halved in May 2020.

Some people say the bullish rally was driven primarily by recent news from PayPal. By January 1, 2021, whales are likely to keep the prices of BTC, ETH, LTC and BCH high enough to sell more expensive coins to PayPal customers.

In conclusion, I do not rely on the "Fear & Greed" index in my trading analysis.