Crypto Panic Deepens as Fear Index Plunges – What Analysts Expect Next

AltcoinsBitcoin

Crypto Panic Deepens as Fear Index Plunges – What Analysts Expect Next

The digital asset market slipped deeper into distress on Wednesday as the Crypto Fear & Greed Index collapsed to 15, down sharply from 24 just a day earlier.

Key Takeaways:

  • Crypto Fear & Greed Index drops to 15, signaling extreme panic.
  • Bitcoin’s decline and weak volumes deepen negative sentiment.
  • Analysts warn of more volatility before conditions stabilize.
  • Michaël van de Poppe expects a brief altcoin rebound, then a correction.
  • Extreme fear levels often align with mid-term market bottoms.

The weekly average sits at 27, signaling a broad deterioration in confidence and placing the market firmly in what analysts describe as “extreme panic.”

These conditions typically emerge during heavy selling phases, when traders begin to withdraw liquidity, sentiment fractures quickly, and volatility spikes. Market historians note that while such readings often accompany local bottoms, the path to stabilization is rarely smooth.

Analysts Warn That Panic May Intensify Before Conditions Improve

The Fear & Greed Index draws from a blend of six indicators covering volatility, trading volumes, Bitcoin dominance, social sentiment, surveys, and search behavior. Nearly all categories weakened simultaneously as Bitcoin slipped, liquidity thinned out, and macroeconomic anxieties resurfaced due to rising U.S. interest rates.

A growing number of analysts now expect choppy conditions to continue through the week. Among them is well-known market strategist Michaël van de Poppe, who shared a visual model outlining a potential near-term altcoin roadmap.

According to his outlook, many altcoins could attempt a short-lived recovery, retesting resistance levels first established around early October. However, he anticipates that any rebound is likely to be followed by a pullback as traders, still shaken by the sentiment collapse, rush to take profits.

Van de Poppe’s scenario positions this correction as a prelude to a stronger upward leg later in the month – but only once the market exhausts the current wave of fear-driven selling.

Extreme Sentiment May Offer a Setup, But Volatility Remains High

Despite the doom-and-gloom readings, some experts point out that extreme fear phases frequently overlap with accumulation zones. These moments often see long-term investors step in as retail traders retreat. Still, the short-term outlook remains highly volatile, with selling pressure expected to reappear quickly after any bounce.

Market watchers caution that until economic indicators stabilize and liquidity returns, sentiment will remain fragile. For now, traders face a landscape shaped by emotional decision-making, rapid price swings, and a deeply risk-off mindset.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

telegram

Author

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

Source: https://coindoo.com/crypto-panic-deepens-as-fear-index-plunges-what-analysts-expect-next/