Matrixport said that while market sentiment is extremely depressed and pessimism is spreading, there is a possibility a bottom could form at these levels.
Matrixport said that based on its in-house Fear & Greed Index, the latest readings suggest Bitcoin’s price is nearing an inflection point.
Frank Holmes said Bitcoin is in an extreme oversold zone seen only three times in the past five years, and that the odds of a short-term rebound over the next 20 trading days have historically been high.
What could happen next?
Short-termNeutral(Confidence Level: 50%)The fear index at 10 signals a potential bottom, while the risk of a long squeeze persists due to concentrated long positions. Credibility is downgraded amid news-tech clashes. If Bitcoin successfully holds $66.5k support, it could stabilize at $68.5k with a target of $70.8k. Failure could trigger a sharp drop to $64.5k, making a conservative approach targeting a V-shaped rebound viable.Mid-termPositive(Confidence Level: 65%)According to Matrixport analysis, selling pressure is expected to exhaust, and bargain-hunting buying is anticipated to intensify in the Bitcoin $68k range. If Bitcoin successfully breaks above $72k (MA20), a trend reversal accelerating toward $78k is projected. Should the breakout fail, caution is warranted against a prolonged sideways trading range re-testing the $62k bottom.Long-termPositive(Confidence Level: 65%)Expectations are high for Bitcoin to resume its long-term all-time high rally based on Frank Holmes' historical data-driven structural bottom zone. A recovery to $83.5k (MA50) targets the full-scale launch of the all-time high rally. A breakdown below $60k necessitates reducing asset allocation and implementing rigorous risk management due to a shift into a prolonged bear market phase.
Bitcoin (BTC) investor sentiment has plunged to its lowest level in four years. Still, some argue that such conditions could signal a market bottom.
According to Cointelegraph on the 17th (Korea time), Matrixport said in a report that "current market sentiment is extremely depressed, and broad-based pessimism is spreading," adding that "at these levels, selling pressure may become exhausted, increasing the likelihood that a bottom is formed."
The analysis is based on Matrixport’s in-house
Fear & Greed Index.
Matrixport also noted that "given the relationship between sentiment and Bitcoin’s price action, the latest readings suggest the market is approaching an inflection point."
Meanwhile, Alternative’s Fear & Greed Index also held in the extreme fear zone, posting a reading of 10 on the day.
Frank Holmes, chairman of Hive, said "Bitcoin is currently trading at low levels relative to its 20-day average trading range," adding that "this level marks an extreme oversold zone that has appeared only three times over the past five years." He added that "during such extreme periods, the probability of a short-term rebound over the following 20 trading days has historically been high."
#MarketRebound #FearIndex $BTC