\n
<\/p>\n
\n\t\t\t\t\t\t\t\t\tCrypto fear drops below zero on Matrixport index, hinting selling pressure may be exhausted and a reversal could be near.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Bitcoin sentiment has dropped to its most pessimistic levels in years, with Matrixport\u2019s proprietary Greed and Fear Index signaling that selling pressure may be nearing exhaustion.<\/p>\n
The financial services firm suggested in its most recent analysis that the market could be approaching a turning point, even as prices face continued short-term uncertainty.<\/p>\n
In a chart published on February 17, Matrixport revealed<\/a> that its Greed and Fear Index has fallen below zero on its 21-day average, a zone that in past cycles appeared close to price floors.<\/p>\n The model tracks changes in positioning and volatility, and earlier instances of similar readings often occurred shortly before markets stabilized. The note added that prices could still drop further before any recovery, though historically such pessimistic sentiment often coincided with what it called \u201cattractive\u201d entry periods.<\/p>\n \u201cGiven the cyclical relationship between sentiment and Bitcoin price action, the latest reading suggests the market may be approaching another inflection point,\u201d the company stated.<\/p>\n<\/blockquote>\n Matrixport also pointed out that traders needed to be careful, with the current environment demanding they \u201csharpen\u201d their focus in preparation for \u201cconditions that typically precede a meaningful rebound.\u201d<\/p>\n And their call isn\u2019t without merit if observable signals like institutional flows are anything to go by. According to Lookonchain, Bitcoin investment products recorded<\/a> another week of outflows, with $380 million exiting in the last seven days. In that time, BlackRock\u2019s IBIT hemorrhaged 3,538 BTC, closely followed by Fidelity, which saw over 2,000 BTC worth upwards of $143 million withdrawn.<\/p>\n Additionally, while BTC was trading around the $68,000 level at the time of writing, barely slipping in the last 24 hours, the king cryptocurrency is down nearly 3% on the week, with steeper drops on longer timeframes, including a 28% collapse over 30 days and a more than 40% decline across the past six months, per data from CoinGlass.<\/p>\n Matrixport\u2019s analysts aren\u2019t the only ones who\u2019ve noticed the mood of trepidation in the market. Earlier in the month, Alternative.me\u2019s widely followed Fear and Greed Index told a similar story, dropping<\/a> to its lowest level since 2019, after Bitcoin shaved about $30,000 from its price in less than ten days.<\/p>\n Interestingly, data shared earlier today by analyst Darkfost pointed<\/a> to another pressure point. According to them, open interest across exchanges has been shrinking steadily since the October 2025 market top, with positions on Binance down about 39% and declines of approximately 33% on Bybit and 24% on BitMEX.<\/p>\n \u201cThis environment indicates that investors are actively reducing exposure, cutting risk, or being forced out through liquidations driven by ongoing volatility,\u201d Darkfost explained. \u201cUnder these conditions, it is difficult to envision Bitcoin stabilizing sustainably and reigniting a bullish trend in the short term.\u201d<\/p>\n<\/blockquote>\n\n
You may also like:<\/h3>\n
Derivatives Contraction Signals<\/h2>\n
\n
\nSECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link<\/a> to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).<\/b><\/div>\n<\/div>\n