Bitcoin's “death cross” occurs when the 50-day moving average falls below the 200-day moving average, often signaling a bearish trend. However, it doesn’t always lead to immediate large corrections. Historical patterns suggest it can indicate a downturn, but price action and market sentiment also play significant roles in determining the actual impact.
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Tokenomics refers to the economic model behind a cryptocurrency or token, including its distribution, supply limits, inflation rate, and utility within the ecosystem. It encompasses aspects like how tokens are created, how they’re allocated (e.g., to the team, investors, or community), and how they are used in the project (e.g., governance, staking, or transaction fees). A well-designed tokenomics structure ensures that a project has long-term viability, incentivizes participation, and prevents inflation or excessive centralization. Evaluating tokenomics helps investors assess the sustainability and potential growth of a project, as poorly designed tokenomics can lead to inflation, centralization of power, or a lack of utility.
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The Fear & Greed Index is a sentiment tool that gauges market emotions. When the index shows high greed, it may indicate that the market is overheated, suggesting a potential price correction. On the other hand, extreme fear could signal a buying opportunity, as prices may be undervalued due to panic selling. Using this index alongside technical analysis can help traders make more informed decisions—buying when fear is high and selling when greed dominates. However, it’s essential to combine sentiment analysis with fundamentals for a well-rounded strategy.
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