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Matrixport said that although uncertainty remains in the short term, sentiment towards the cryptocurrency market has reached a rare level of pessimism, which may pave the way for an upcoming trend turning point.
In an analysis published today, February 17, ‘Matrixport’ explained that its own Fear and Greed Index fell below zero at the 21-day moving average, an area that has coincided with price near bottoms in previous sessions.
The model relies on tracking positioning and fluctuations, with similar readings preceded by periods of relative stability and recovery.
However, Matrixport warned that prices could fall further before any potential rebound.
According to Lookonchain, this data comes against the backdrop of ongoing selling pressure, as the Bitcoin investment product recorded $380 million worth of outflows over the past week.
BlackRock’s IBIT fund saw outflows of more than 3,500 Bitcoins, while Fidelity funds saw withdrawals of more than 2,000 Bitcoins.
According to data from “CoinGlass”, the price of Bitcoin is currently trading around $68,000, with a weekly decline of about 3%, while the monthly decline has reached about 28%, and the decline has exceeded 40% in six months.
Derivatives data also reflects that since the peak in October 2025, positions have shrunk significantly, with Binance’s positions falling by approximately 39%, Bybit’s falling by 33%, and BitMEX’s falling by 24%, indicating a significant decline in risks or forced liquidations caused by volatility.
Some analysts believe that this atmosphere makes it difficult to imagine a resumption of a strong upward trend in the short term, although excessive pessimism may be an early sign of a possible turning point.
Also read:
Three factors that could drive crypto markets this week: Know them
