Matrixport: Market sentiment has dropped to a low point, and short-term prices may weaken further

PANews reported on February 17 that Matrixport posted on X, stating that market sentiment has dropped to a low point, with pessimism dominating. According to the "Fear and Greed Index," more sustained cyclical bottoms usually appear after the 21-day moving average of the daily sentiment indicator crosses below the zero line and then starts to rebound. Such a "weak-to-strong" shift typically signals that selling pressure is nearing its end and the market is entering a phase of recovery and stabilization.

In the short term, prices may still weaken further, but historically, when sentiment turns deeply negative, it often corresponds to a more favorable risk-reward range. Based on the cyclical linkage between sentiment and price, the current reading suggests the market may be approaching a key turning point. The focus going forward is to closely watch for core signals and signs of improvement that are commonly seen before a rebound.