Matrixport: Market sentiment has dropped to a low level, and in the short term, prices may weaken further.

On February 17, Matrixport announced on its X platform that market sentiment has fallen to a low level, and pessimism prevails.

Looking at the "Greed and Fear Index," a more stable bottom usually appears after the 21-day moving average of the daily sentiment indicator crosses the zero line from below. This "weak to strong" reversal typically indicates that selling pressure is easing, and the market is entering a phase of recovery and stabilization.

Short-term prices may weaken further, but historically, periods of deep negative sentiment have often corresponded to more favorable risk-reward ranges. Considering the cyclical correlation between sentiment and prices, current readings suggest that the market may be approaching a critical inflection point.

Going forward, the main focus will be on whether key signals show signs of improvement, typical of periods before a rebound.