Analysis: Market in Extreme Fear or Signaling Approach of a Temporary Bottom
BlockBeats News, February 17th, according to Cointelegraph, the current crypto market sentiment has dropped to a "state of extreme fear," possibly nearing the formation of a "lasting bottom," where selling pressure may be gradually exhausting.
The Bitcoin "Fear and Greed Index" shows that when the 21-day moving average falls below the zero axis and then turns back up, it often corresponds to a temporary bottom, and a similar signal has now appeared. This typically indicates a weakening selling momentum and the beginning of a more stable market condition. However, the institution also warns that in the short term, prices may still experience further downward pressure. Nevertheless, historical experience indicates that the range of extreme negative sentiment often provides a relatively attractive entry point.
At the same time, the "Fear and Greed Index" compiled by Alternative.me has a reading of 10 (out of 100), in the "extreme fear" range, marking a low not seen since June 2022. Frank Holmes, Chairman of Hive, stated that the current Bitcoin price is about two standard deviations below its 20-day moving average, a situation that has only occurred three times in the past five years. Historical data shows that in similar extremely oversold environments, a technical rebound is more likely to occur in the following 20 trading days.
If Bitcoin closes lower in February, it will mark the fifth consecutive monthly decline, one of the longest such declining streaks since 2018. The market is watching whether extreme sentiment and technical oversold signals will together drive the formation of a new inflection point.
You may also like

From Mining Enterprise to Infrastructure Builder, Bitdeer Unpacks the Survival Logic behind BTC

How Can Agentic Commerce Empower AI to Start Making Money?

February Correction: Is the Crypto Market Bottoming Out?

AI Payments Through the Lens of Fintech Giants: Five Levels, Stablecoin Infrastructure, Next-Gen Globalized Commerce

Zuckerberg Retweets Stablecoin, Can Meta Win This "Comeback Game"?

Polymarket New Rule Release: How to Build a New Trading Bot

Bitwise: The Institutional Wave is Here, So Why is the Market Still Sleeping?

WEEX LALIGA Partnership 2026: Where Football Excellence Meets Crypto Innovation
WEEX becomes official crypto exchange partner of LALIGA in Hong Kong and Taiwan. Discover how this partnership brings together football excellence and trading discipline.

AI Apocalypse, a massive short squeeze

The "Second Truth" of the Luna Crash: Jane Street Exits Ahead of Plunge

Jane Street Market Manipulation, Stripe Considering Acquiring PayPal, What's the Overseas Crypto Community Talking About Today?
WEEX × LALIGA 2026: Trade Crypto, Take Your Shot & Win Official LALIGA Prizes
Unlock shoot attempts through futures trading, spot trading, or referrals. Turn match predictions into structured rewards with BTC, USDT, position airdrops, and LALIGA merchandise on WEEX.

a16z: Why Do AI Agents Need a Stablecoin for B2B Payments?

February 24th Market Key Intelligence, How Much Did You Miss?

Web4.0, perhaps the most needed narrative for cryptocurrency

Some Key News You Might Have Missed Over the Chinese New Year Holiday

Key Market Information Discrepancy on February 24th - A Must-Read! | Alpha Morning Report
