Crypto markets are trending toward their calmest mood in years, and some analysts say this could be a signal that sellers are running out of steam. According to Matrixport, declining investor sentiment has pushed its metrics to levels that in the past have matched market turning points.
Crypto sentiment at multi-year low
According to Matrixport, its Bitcoin Fear and Greed Gauge has a 21-day moving average below zero and is starting to rise, which is the kind of shift that in previous episodes signaled the end of large-scale selling.
Reports indicate that Alternative.me’s Fear and Greed Index sits at nearly 10 out of 100, a reading that corresponds to what traders call “extreme fear.” These are crude and unsightly numbers. They also tend to encourage a few investors to look for bargains.
Similar readings from the past
Past times with similar readings have come after sharp declines. Matrixport cited June 2024 and November 2025 as prior periods when market sentiment reached comparable depths, and each was followed by at least one temporary change in price action.
This trend doesn’t promise a rebound every time, but it shows how deeply negative opinions can ultimately be absorbed by buyers returning to lower prices.
Technical indicators are flashing oversold signals
Hive’s Frank Holmes says Bitcoin is about two standard deviations below its 20-day trading norm – a rare reading seen only a few times in five years. Reports note that these extremes have historically produced short-term rebounds over the following 20 trading days.
Bitcoin itself has moved strongly: it briefly climbed above $70,000 over the weekend, only to fall back around 2.5%, trading near $68,750 at the time of writing.
Other trackers report that it has fallen by almost $60,000, one of the biggest drops in several years. Traders are closely watching US GDP and income data, which could influence risk appetite and future moves in crypto markets. Selling pressure can be close to exhaustion
Reports indicate that Matrixport still warns that prices could fall before a significant bottom is cemented. The company highlights a cyclical link between mood and prices: deep pessimism often precedes an inflection, but cycles can be complicated and extended.
Selling pressure may be exhausted and yet new headlines or data may push prices down further before buyers feel confident enough to stay.
Some investors view the current numbers as an interesting entry point, while others prefer to wait for clearer confirmation of price and volume.
Long-term holders often cite underlying network metrics and institutional interest as reasons to remain bullish, and their positions are closely monitored.
In contrast, short-term players take a cautious stance, using stops, increasing entries, or sitting tight until signals firm up.
Featured image from Unsplash, chart from TradingView
