Bitcoin According to analytics firm 10x Research, sentiment has plunged into extreme pessimism, suggesting a tactical or intermediate low from which a BTC price rebound is likely.
The company’s proprietary “Greed & Fear” index, which measures market sentiment, collapsed to a record low of less than 5 points. Readings below 10% represent extreme fear or pessimism, and above 90% represent a green signal or excessive optimism.
More importantly, the index’s 21-day simple moving average has slipped to 10%, a level that has consistently marked tactical lows over the years.
“Our own 10x Greed & Fear Index is near its lowest possible level, and the slower-moving average has now reached the 10% zone, a level that often marks a tactical low,” Markus Thielen, founder of 10x Research, told CoinDesk.
Maximum pessimism does not necessarily signal an immediate end to the downtrend. Although prices may continue to fall, the pace is expected to slow, with a tactical low in sight.
“Prices can fall further, as we saw in March when the indicator bottomed before bitcoin continued to fall in April. Yet bitcoin still saw a 10% rebound immediately after that initial level of low sentiment. With sentiment now near the bottom, a similar short-term rebound is possible,” Thielen explained.
Bitcoin was trading near $84,800 at press time, after hitting a low of $80,880 on Friday, according to CoinDesk data. Despite the rebound, prices are still down 10% over the week and 23% over the month.
