Crypto market sentiment has hit extreme lows, signaling a possible “durable bottom” according to analysts at Matrixport. The firm’s Bitcoin fear and greed index suggests that selling pressure may be exhausting. However, prices could still drop further in the short term. Historically, such low sentiment readings have provided attractive entry points.

The Matrixport sentiment metric is at its lowest since 2024 and 2025, following steep market declines. Alternative.me’s Fear and Greed Index is also at a low level, indicating “extreme fear.” Bitcoin could be on track for its worst Q1 since 2018, with five straight monthly losses if February closes in the red.

Bitcoin is currently at historic oversold levels, with chairman of Hive Digital Tech stating it is two standard deviations below its 20-day trading norm. Such extremes have historically favored short-term bounces. Despite market jitters, the long-term fundamentals of Bitcoin remain strong, creating potential opportunities for investors.

Read more at Cointelegraph: Bitcoin Sentiment Hits Lows Amid Oversold Signals