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

**Crypto Market Sentiment Hits Extreme Fear; Bitcoin Signals Potential Bottom (Cointelegraph)** Feb 17 — Per Cointelegraph, crypto market sentiment has slipped into **extreme fear**, with signs pointing to a potential "lasting bottom" as selling pressure gradually eases. The Bitcoin Fear & Greed Index notes that when its 21-day moving average (MA) drops below the zero line then turns upward, it often signals a temporary bottom — and such a signal has emerged now. This typically indicates weakening selling momentum and the start of more stable market conditions. However, the outlet warns short-term price downside pressure may still persist. Still, historical trends show extreme negative sentiment often creates a relatively attractive entry point. Separately, Alternative.me’s Fear & Greed Index reads 10 (out of 100), landing in the "extreme fear" zone — a low not seen since June 2022. Hive Chairman Frank Holmes stated Bitcoin’s current price is roughly two standard deviations below its 20-day MA, a scenario that has occurred only three times in the past five years. Historical data shows a technical rebound is more likely within the next 20 trading days in such extreme oversold environments. If Bitcoin closes lower in February, it will mark its fifth consecutive monthly decline — one of the longest such streaks since 2018. The market is watching whether extreme sentiment and technical oversold signals will combine to form a new inflection point.