Bitcoin sentiment has crashed to extreme levels — the kind we almost never see.
Fear is dominating the market harder than the chart itself.
The Fear & Greed Index just fell under 5.
The 21-day average is stuck near 10%.
This only happens after weeks of selling, hesitation, and pure exhaustion.
When fear hits these levels, markets usually stop falling aggressively and start stabilizing.
Not a macro bottom — just a tactical one.
A place where selling burns out and short-term rebounds become statistically more likely.
Bitcoin has already dropped 23% this month.
Price touched the mid-80K zone and bounced, but sentiment is still collapsed.
This phase — slow, compressed candles — is where bottoms often form.
History is clear: extreme fear doesn’t instantly reverse trends…
but it limits them.
Sellers get exhausted.
Pressure fades.
That’s when relief bounces form.
We saw the same pattern in March:
Sentiment crashed first → price bounced next.
Right now Bitcoin is showing the same setup.
Narrow candles.
Tight ranges.
Emotion at record lows.
This is the kind of environment where even a small spark can flip momentum.
If buyers show up, even modestly, a relief rally is on the table.
If they don’t, price may dip lower — but slowly.
Either way, the emotional rubber band is stretched to its limit.
Extreme fear never lasts.
When it breaks, the price usually reacts fast.
Bitcoin looks close to that point again.
This isn’t about hope.
It’s about repeated market behaviour.
Emotion shifts first.
Price follows next.
$BTC
