Matrixport Flags ‘Extremely Depressed’ Crypto Sentiment

[ed]

Crypto market sentiment has plunged to extreme lows, a level that has historically preceded short-term rebounds, according to analysts at Matrixport. In a Tuesday note, the firm said broad pessimism is now dominating the market.

Matrixport’s proprietary Bitcoin fear and greed index shows that “durable bottoms” often form when the 21-day moving average drops below zero and then reverses higher — a condition that is currently in play. The firm noted that this shift can signal selling pressure is becoming exhausted and that market conditions may be stabilizing.

Still, analysts cautioned that additional downside is possible before a sustained recovery takes hold. Historically, however, similar deeply negative sentiment readings have offered attractive entry points for long-term investors.

[cryptobro]

historically only 3 times in 5 years… might be one of those rare rebound moments