Analysis: Market in Extreme Fear or Signaling Approach of a Temporary Bottom

By: theblockbeats.news|2026/02/17 14:01:17
0
Share
copy

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.

-- Price

--

You may also like

2025 South Korea CEX Listing Post-Mortem: Investing in New Coins = 70% Loss?

The 2025 South Korean exchange's new token listing performance is structurally similar to Binance's, with no significant differences.

BIP-360 Analysis: Bitcoin's First Step Towards Quantum Immunity, But Why Only the "First Step"?

This article explains how BIP-360 reshapes Bitcoin's quantum defense strategy, analyzes its enhancements, and discusses why it has not yet achieved full post-quantum security.

50 million USDT exchanged for 35,000 USD AAVE: How did the disaster happen? Who should we blame?

Due to a fatal flaw in the transaction path, a $50 million DeFi operation was executed with almost zero protection, resulting in nearly the entire amount of funds evaporating in a tiny liquidity pool.

The Cryptographic Past of the Middle East

Reality is often more exciting than fiction.

Resolving the Intergenerational Prisoner's Dilemma: The Inevitable Path of Nomadic Capital Bitcoin

When the baby boomer generation collectively sells off, who will become the "greater fool" in the next round of asset crashes?

Who Will Control AI? Why Decentralized AI May Be the Only Alternative to Government and Big Tech

AI has become critical infrastructure, and governments and corporations are competing to control it. Centralized development and regulation are entrenching existing power structures. The Web3 community is building a decentralized alternative — distributed compute, token incentives, and community governance — before that window closes.

Popular coins

Latest Crypto News

Read more