"Crypto assets gripped by 'extreme fear' as pessimism spreads…inflection point nearing"

Bitcoin (BTC) investor sentiment has plunged to its lowest level in four years. Still, some argue that such conditions could signal a market bottom.

According to Cointelegraph on the 17th (Korea time), Matrixport said in a report that "current market sentiment is extremely depressed, and broad-based pessimism is spreading," adding that "at these levels, selling pressure may become exhausted, increasing the likelihood that a bottom is formed."

The analysis is based on Matrixport’s in-house Fear & Greed Index.

Matrixport also noted that "given the relationship between sentiment and Bitcoin’s price action, the latest readings suggest the market is approaching an inflection point."

Meanwhile, Alternative’s Fear & Greed Index also held in the extreme fear zone, posting a reading of 10 on the day.

Frank Holmes, chairman of Hive, said "Bitcoin is currently trading at low levels relative to its 20-day average trading range," adding that "this level marks an extreme oversold zone that has appeared only three times over the past five years." He added that "during such extreme periods, the probability of a short-term rebound over the following 20 trading days has historically been high."