Bitcoin According to analysis firm 10x Research, sentiment has fallen into extreme pessimism, suggesting a tactical or interim low from which BTC price is likely to rebound.
The company’s proprietary Greed & Fear index, which measures market sentiment, plummeted to an all-time low of less than 5 points. A reading below 10% indicates extreme fear or pessimism, while a reading above 90% indicates green or excessive optimism.
More importantly, the index’s 21-day simple moving average is down 10%, a level that has been a consistent tactical low for years.
10x Research founder Markus Thielen told CoinDesk: “Our 10x Greed & Fear Index is hovering near the lowest possible value, with the slow moving average currently reaching the 10% zone, a level that often indicates a tactical low.”
A peak in pessimism does not necessarily signal an immediate end to a downtrend. Prices may continue to fall, but the pace is likely to slow with tactical lows on the horizon.
“The price could fall further, as we saw in March when the index bottomed before Bitcoin continued its decline heading into April. Yet, Bitcoin still rebounded 10% shortly after the initial low sentiment. Now sentiment is nearing the bottom again and a similar short-term rebound is possible,” Thielen explained.
Bitcoin hit a low of $80,880 on Friday and is trading near $84,800 at the time of writing, according to CoinDesk data. Despite the rebound, prices are still down 10% for the week and 23% for the month.
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