Extreme Fear Dominates Bitcoin! What Does This Mean for the BTC Price? Analysis Company Both Signaled a Bottom and Issued a Warning!
Following its recent declines, Bitcoin (BTC) has also seen a decrease in sentiment.
Accordingly, market sentiment towards Bitcoin has fallen to its lowest level in four years, and analysts argue that this could signal a market bottom.
In its latest report, cryptocurrency analytics company Matrixport stated that sentiment, reflecting widespread pessimism across the market, has fallen to extremely low levels, hitting its lowest point in the last four years.
Matrixport, in its analysis based on its self-developed Fear and Greed Index, stated that the market has reached an oversold level and that sellers are beginning to tire, but argued that the bottom may not have been reached yet.
Matrixport stated that if the 21-day moving average in its index falls below zero and then starts to turn upwards, it would indicate that selling pressure has subsided, and added, “this is exactly the scenario we are currently experiencing.”
Analysts warned that while historically negative sentiment readings present attractive opportunities, prices could fall further in the short term.
Analysts, including Matrixport, also stated that there is a link between crypto market sentiment and Bitcoin, adding that recent data suggests the market is approaching a turning point.
*This is not investment advice.
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