Matrixport: Is the sentiment for BTC forming a stable bottom at extremely low levels?

The chart shows that the sentiment for #BTC has plunged into a zone of extreme fear - the market is in "everything is lost" mode, which historically often coincides with periods when sellers are already exhausted.

Analysts at #Matrixport note that a stable bottom has more often appeared when the 21-day moving average of the sentiment indicator fell below zero and then turned upwards. Such a reversal is read as a signal that selling pressure is waning and the market is beginning to stabilize.

At the same time, analysts make a fair caveat - the price may still drop lower in the coming weeks, but such "depressive" sentiment values have historically provided the best entry points in terms of risk/potential. Caution is still needed, but the current environment increasingly compels one to focus and prepare for conditions that typically precede a significant rebound.