Bitcoin Sentiment Reaches Worst Level Since February as Panic Becomes Extreme

The “Bitcoin Fear & Greed” index, which measures market sentiment, has plunged to just 10, which is the lowest level since February. 

According to 10x Research, the price has fallen below both the 7-day and 30-day moving averages, which shows weak short-term and medium-term momentum. 

Over the past week, it has lost 6.7%, dropping under $100,000.  Large holders, or “whales,” have been selling, contributing to this decline. 

Outflows from U.S. spot Bitcoin ETFs show waning institutional interest. Moreover, Bitcoin’s persistent negative correlation with the Nasdaq 100 means it tends to drop more sharply during tech sell-offs than it rises during tech rallies. 

You Might Also Like

On Friday, when the price of the leading cryptocurrency dropped below $95,000, the price of discussions about it reached a four-month high, according to analytics platform Santiment.  

Such a massive spike shows that there is widespread fear, uncertainty, and doubt (FUD) among retail investors.  

Historically, this can indicate that selling pressure is peaking and a reversal might be more likely. Essentially, extreme panic often happens near market lows.

Death cross 

In the meantime, Bitcoin has formed a new “death cross.” While the term might seem scary, this is generally viewed as a lagging indicator.  

According to analyst Benjamin Cowen, these events have often coincided with local market lows, meaning short-term bottoms. 

However, he cautions that if the current cycle is ending, any bounce after the death cross might fail. 

The analyst notes that if Bitcoin is going to rebound within this cycle, signs of a bounce should appear within the next week. If no bounce happens, it likely signals further downside before a larger rally toward the 200-day moving average, which would then form a macro lower high, a key point in the market cycle.