$ETH Back to square one overnight! Extreme panic once again shrouds the market, where's the turning point?
Crypto friends, market sentiment has changed overnight! The 'fear index' that just took a breather yesterday has now directly turned downward, plummeting from 28 to 23, returning to the 'extreme fear' zone. It's like someone who just felt a bit better suddenly develops a high fever again.
Why the sudden panic? Most likely due to a combination of multiple concerns: last night’s unusual large BTC deposit by BlackRock to the exchange, anxiety over tonight's PCE data, and the uncertainty before next week’s Federal Reserve meeting—all these weigh heavily on the market. The fear index accurately reflects this collective anxiety.
But my view is: in times of extreme fear, we need to remain calm. This index itself is a lagging indicator; it tells you that the market is 'very scared right now,' but it cannot predict 'what tomorrow will be like.' Historically, such extreme emotional values often indicate that the market's short-term downward momentum may be nearing exhaustion.
A few suggestions for retail investors:
Don’t let the index scare you: Just because you see the words 'extreme fear,' don’t panic and cut losses. This is precisely when emotions are most unstable.
Focus on two key points: First, tonight's PCE data at 11 PM, which acts as an immediate catalyst for sentiment; second, the key price defense line, which is the real battleground for bulls and bears.
Stick to your plan, observe more and act less: If you have a phased layout plan, now is the time to consider executing discipline; if not, then the best action might be to 'not act' and watch how things unfold.
Remember, the market always cycles between extreme fear and extreme greed. When fear is confirmed by data again, what we should do is not follow the panic, but think about our next response.
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