Crypto Sentiment Lifts From ‘Extreme Fear’ After 18 Days
Crypto market sentiment has edged higher after an 18-day stint at the lowest band of a widely followed gauge. The Crypto Fear & Greed Index registered a “Fear” reading of 28 on Saturday, marking the first day since Nov. 10 that it has not shown “Extreme Fear.” The extended period near the index’s most bearish setting through much of November — historically Bitcoin’s (BTC) strongest month on average — drew attention from market observers.
‘Extreme Fear’ often aligns with local lows, traders say
On Nov. 15, analyst Matthew Hyland noted the index had reached the “most extreme fear level” of the current cycle, adding, “A path like this for BTC Dominance would now be max pain.” (source) Days later, on Nov. 23, analyst Crypto Seth remarked, “Extreme Fear is an understatement.” (source) By contrast, trader Nicola Duke observed that each bout of extreme fear on the index has historically coincided with a local bottom for Bitcoin. (source)
The Crypto Fear & Greed Index posted a “Fear” score of 28 on Saturday. Source: alternative.me
Additional metrics indicate sentiment may be stabilizing. On Wednesday, analytics firm Santiment reported “generally bullish sentiment” after Bitcoin rebounded to nearly $92,000, citing its social media bullish-to-bearish sentiment measure. (source)
Market still appears risk-off
Santiment added that current social media discussions around Bitcoin are centered on price volatility and institutional participation, including exchange-traded funds and treasury acquisitions.
Despite this, broader behavior suggests caution. CoinMarketCap’s Altcoin Season Index sits firmly in “Bitcoin Season” at 22 out of 100 — a reading that oscillates between Altcoin and Bitcoin season.
On Friday, André Dragosch, head of research at Bitwise Europe, said Bitcoin’s pricing appears misaligned with the macroeconomic outlook amid rising expectations of a potential recession. “The last time I saw such an asymmetric risk-reward was during COVID,” Dragosch said.
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