The Bitcoin Greed and Fear Index is a sentiment indicator that analyzes market emotions to gauge whether Bitcoin is overbought (driven by greed) or oversold (driven by fear). It operates on a scale from 0 to 100, where 0 signifies “Extreme Fear” and 100 signifies “Extreme Greed.” The index is a composite of several factors, providing a holistic view of the prevailing market sentiment. Its purpose is to help investors make more informed decisions by understanding the collective mindset of the market participants.