Bitcoin Investor Sentiment Bounced Back from the Bottom: Is it a Selling Opportunity?

Recently, the price of Bitcoin continues to draw significant attention among investor circles. The investor sentiment around Bitcoin is dipping to historical low levels, while the likelihood of a short-term recovery in the markets is increasing. According to 10x Research data, the Bitcoin Fear and Greed Index has fallen to its lowest levels in recent years, revealing that the market is engulfed in pessimistic emotions.

This index has dropped below a total score of 5, reaching a record low point. This situation indicates that investor psychology is in deep fear. Markus Thielen, the founder of 10x Research, noted that especially the index's 21-day average falling to around 10 has historically aligned with tactical bottom zones. Thielen emphasized that these levels often coincide with short-term recoveries.

During the week, the Bitcoin price had declined to 80,880 dollars, and at the time of writing, it was trading at approximately 84,800 dollars. Although the price has slightly recovered, it is observed that the monthly loss has reached 23 percent. Thielen pointed out that the dip in this indicator does not definitively indicate the end of the downtrend, but the slowing of declines increases the likelihood of a short-term rebound.

Historical data shows that such signals generally carry potential for a short-term bounce for Bitcoin. Thielen recalled that a similar situation occurred in March this year, where despite the continued drop in prices, there was immediately an approximate 10 percent recovery. Currently, it is observed that investor sentiment has fallen to extreme fear levels, prompting analysts to consider a similar potential for a short-term reaction.

In conclusion, the negative process experienced in the Bitcoin market, while showing a horizontal trend, may present significant opportunities for investors. Carefully positioning at these historical low levels could be a critical strategy for potential gains.