- Crypto market sentiment has reached an “Extreme Fear” level not seen since late February.
- Bitcoin’s price dropped below $95,000 amid ongoing macroeconomic uncertainty.
- Some indicators suggest the current bearish sentiment is less severe than previous downturns.
- Technical analysis shows signs of potential positive movement for Bitcoin.
- Market participants remain cautious due to factors including the U.S. Federal Reserve’s interest-rate decisions.
Crypto sentiment has declined sharply, marking the lowest point in over eight months. The Crypto Fear & Greed Index, a tool that measures overall market sentiment, registered an “Extreme Fear” score of 10 in its latest update on Saturday. This is the lowest score since February 27, when Bitcoin (BTC) dipped below $95,000 on Friday and had not yet surpassed $96,000 as of this report, according to CoinMarketCap.
The February sentiment low followed significant selling pressure, including the worst-ever single-day outflows of $1.14 billion from spot Bitcoin ETFs. At that time, Bitcoin fell from $102,000 to $84,000. Market participants commonly use sentiment indexes to assess overall market mood and guide buy or sell decisions.
Andre Dragosh, European head of research at Bitwise, noted that despite the bearish sentiment, the current market state is less dire compared to past corrections. He highlighted Bitwise’s crypto sentiment index showing signs of reversal and described it as a “positive divergence”, as mentioned in his recent social media post on X.
Recent political developments, such as the end of the longest U.S. government shutdown signed by President Donald Trump, have not fully eased concerns. Uncertainty remains over the U.S. Federal Reserve’s upcoming interest-rate decisions, factors often linked to crypto market volatility.
Technical analysis presents some hopeful signs. Sven Henrich, founder of NorthmanTrader, shared on X that Bitcoin’s chart shows “something potentially positive” for bulls, highlighting a falling wedge pattern and positive divergence.
A research manager from Messari, known as “DRXL,” commented on the unusual gap between media headlines and market sentiment, stating in a post on X that he has never seen such dissonance in his eight years in the crypto industry.
Some analysts interpret the absence of a year-end price surge as a stabilizing factor. Matt Hougan, chief investment officer at Bitwise, recently told Cointelegraph that the largest risk would have come from a sharp rally followed by a sharp pullback.
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