- Bitcoin sentiment has reached an extreme low, indicating possible short-term price recovery.
- The “Greed & Fear” Index by 10x Research fell below 5 points, signaling extreme pessimism.
- The 21-day moving average of the index hit 10%, a level historically tied to tactical market lows.
- Despite a recent bounce, Bitcoin remains down 10% weekly and 23% monthly, trading near $84,800.
Sentiment toward Bitcoin has plunged to unprecedented pessimism, pointing to a likely short-term price rebound, according to analytics firm 10x Research. Their proprietary “Greed & Fear” Index, which quantifies market emotions, dropped to below 5 points—levels that represent extreme fear. The index ranges from below 10% (extreme pessimism) to above 90% (over-optimism).
More notably, the 21-day simple moving average of the index declined to 10%, a threshold that has consistently marked tactical bottoms in Bitcoin’s price over recent years. Markus Thielen, founder of 10x Research, stated this level often signals a tactical low, though it does not guarantee an immediate price reversal.
According to Thielen, prices may still fall further even at peak pessimism, as seen in previous instances like March, where an initial sentiment low was followed by further declines before a bounce. He noted a 10% rebound occurred right after that period, suggesting a similar short-term recovery could be possible with sentiment now near rock bottom again.
As of the latest data, Bitcoin traded near $84,800, recovering slightly after hitting a low of $80,880 on Friday. Despite this bounce, the cryptocurrency is still down roughly 10% for the week and 23% for the month, reflecting ongoing market pressures.
For more details about the sentiment indicator and market performance, visit 10x Research and corresponding data on CoinDesk.
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