In finance, the term sentiment (or market sentiment) refers to the subjective feeling about a market condition. It is the overall emotion of the community towards a particular asset. The market sentiment comes from multiple factors such as price history and news. It may also come from indicators in fundamental and technical analysis.
Market sentiments can be categorized into two opposite spectrums, bullish (positive) and bearish (negative). Typically, the market will start to move in the opposite direction if it becomes overly optimistic or pessimistic.
Two emotional factors usually come into play when measuring market sentiment: fear and greed. Fear and greed index is especially useful in evaluating the crypto market in order to determine whether to sell or buy an asset.