Crypto extreme fear suggests incoming inflection point: Matrixport

Crypto marketplace sentiment has fallen to utmost lows and could pb to a “durable bottom” that exhausts selling pressure, according to analysts astatine crypto fiscal services firm Matrixport. 

“Sentiment has fallen to highly depressed levels, reflecting broad pessimism crossed the market,” said Matrixport successful a enactment connected Tuesday. 

Matrixport’s ain Bitcoin (BTC) “fear and greed index” suggests that “durable bottoms” signifier erstwhile the 21-day moving mean drops beneath zero and reverses higher, which is presently the case.

“This modulation signals that selling unit is becoming exhausted and that marketplace conditions are opening to stabilize.” 

However, Matrixport cautioned that prices could inactive diminution further successful the adjacent term. Historically, these profoundly antagonistic sentiment readings person offered charismatic introduction points, they said. 

“Given the cyclical narration betwixt sentiment and Bitcoin terms action, the latest speechmaking suggests the marketplace whitethorn beryllium approaching different inflection point,” it stated.

Bitcoin sentiment hits utmost lows. Source: Matrixport

Crypto marketplace sentiment astatine four-year lows

Previous periods erstwhile the Matrixport sentiment metric was this debased were astir June 2024 and November 2025, pursuing periods of steep marketplace declines. 

Alternative.me’s “Fear and Greed Index” is besides astir its lowest level since June 2022, with a reading of 10 retired of 100 indicating “extreme fear.” 

Related: Bitcoin down 22%, could it beryllium the worst Q1 since 2018?

If Bitcoin closes February successful the red, it volition people 5 consecutive monthly losses successful the longest streak since 2018, and 1 of the steepest sustained sell-offs successful history.  

Bitcoin is astatine historical oversold levels 

Frank Holmes, president of Bitcoin mining steadfast Hive, said connected Monday that Bitcoin is present astir 2 modular deviations beneath its 20-day trading norm. “This is simply a level we’ve seen lone 3 times successful the past 5 years,” helium said. 

“Historically, specified extremes person favored short-term bounces implicit the consequent 20 trading days,” helium explained.  

“Despite the ongoing marketplace jitters, I stay bullish successful the agelong word due to the fact that the fundamentals inactive look strong.”

BTC is successful historical oversold territory, creating opportunity. Source: Hive

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