Bitcoin BTC$90,949.09 sentiment has plunged to extreme fear levels, signaling that a short-term market bottom may be forming, according to a new update from 10x Research.
The firm’s proprietary Greed & Fear Index, which tracks overall investor mood, has fallen to an unprecedented low of under 5 points. Readings below 10% indicate extreme pessimism, while scores above 90% point to excessive optimism.
Importantly, the indicator’s 21-day simple moving average has also slipped to 10%, a threshold that has historically lined up with tactical lows in previous bitcoin cycles.
“Our 10x Greed & Fear Index is hovering near its lowest possible level, and the slower-moving average has now dropped into the 10% zone—a region that has often marked tactical bottoms,” said Markus Thielen, founder of 10x Research, in comments to CoinDesk.
Still, a sentiment collapse doesn’t automatically signal that selling has exhausted. Thielen noted that prices can continue to drift lower even after the index bottoms, though the rate of decline often cools at this stage.
“In March, the indicator hit its low before bitcoin extended its drop into April,” he said. “But immediately after that first sentiment bottom, bitcoin still bounced roughly 10%. With sentiment back at rock bottom, a similar short-term reaction could unfold.”
At press time, bitcoin was trading near $84,800 after briefly falling to $80,880 on Friday, according to CoinDesk data. Despite the modest recovery, BTC remains down 10% over the past week and 23% on the month.
