Crypto Sentiment Improves from ‘Extreme Fear’ After 18 Days

In the past 18 days, the crypto market has stayed at a low point in sentiment, but signs of recovery are now emerging. The Crypto Fear & Greed Index, which tracks the overall mood in the cryptocurrency market, posted a “Fear” score of 28 on Saturday—marking the first time since November 10 that it has not registered an “Extreme Fear” score. This extended period at the bottom of the index, known for being Bitcoin’s best-performing month historically, has been noted by the crypto community.

Key Takeaways

The Crypto Fear & Greed Index has moved from ‘Extreme Fear’ to a ‘Fear’ score of 28, indicating a potential shift in market sentiment.
Historical trends suggest that low sentiment readings can mark local price bottoms for Bitcoin.
Bitcoin is currently showing signs of bullish sentiment after nearly reaching $92,000.
Market participants remain cautious, with the Altcoin Season Index reflecting a strong Bitcoin season and investor hesitance amidst economic uncertainty.

Crypto sentiment moves up from ‘extreme fear’ after 18-day stretch

Understanding the Indicators: ‘Extreme Fear’ and Market Movements

On November 15, crypto analyst Matthew Hyland remarked that the index was at its “most extreme fear level” of the current cycle. He noted that such low sentiment often indicates a turning point, suggesting significant downside for Bitcoin dominance. Days later, fellow analyst Crypto Seth emphasized that the state of “Extreme Fear” was an understatement.

Despite the gloomy sentiment, trader Nicola Duke pointed out that whenever the index has indicated extreme fear, it has often preceded a “local bottom” for Bitcoin prices.

Cryptocurrencies _The Crypto Fear & Greed Index posted a “Fear” score of 28 on Saturday. Source: _alternative.me

Signs of Recovery: A Shift in Sentiment

Recent indicators show positive signs of a recovery in market sentiment. According to crypto sentiment platform Santiment, Bitcoin is currently displaying “generally bullish sentiment” after its price climbed back to nearly $92,000. They derived this from their bullish-to-bearish sentiment indicator observed on social media.

Market Activity: Caution in Investor Mindset

Despite some optimistic signs, participants in the crypto market remain cautious and risk-averse. The Altcoin Season Index from CoinMarketCap is firmly situated in “Bitcoin Season” with a score of 22 out of 100—a measurement that reflects shifts between Altcoin and Bitcoin-focused market conditions.

On Friday, Bitwise Europe's head of research, André Dragosch, highlighted that Bitcoin’s price appears misaligned due to misinterpretations of the broader macroeconomic landscape, especially amid rising recession expectations. “The last time I saw such an asymmetric risk-reward was during COVID,” he commented.