Bitcoin Sentiment Hits Extreme Fear, Matrixport Flags Bottom Signal


#Crypto market sentiment has dropped to extreme lows that have historically preceded #short-term recoveries, though analysts at Matrixport warned that further price declines remain possible in the near term. The firm published a note on Tuesday stating that sentiment has reached "extremely depressed levels, reflecting broad pessimism across the market."


Matrixport's proprietary $BTC Fear and Greed Index currently shows its 21-day moving average has dropped below zero and begun to reverse higher, a pattern the firm describes as characteristic of "durable bottoms." The firm interprets this transition as a sign that selling pressure may be exhausting and that market conditions are beginning to stabilize.


The firm cautioned that prices could still fall further despite the signals. Historically, these deeply negative sentiment readings have offered entry points for investors, and Matrixport described the current reading as suggesting the market "may be approaching another inflection point."


Comparable lows on Matrixport's #sentiment metric were last recorded around June 2024 and November 2025, both following periods of sustained market declines. If #Bitcoin closes February in the red, it would mark five consecutive monthly losses, the longest such streak since 2018 and one of the steepest sustained sell-offs in the asset's history.

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February 17, 2026 at 2:24 PM
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