After Extreme Pessimism, Crypto Market Conditions Begin To Stabilize: Analysts

Crypto markets are leaning toward their quietest mood in years, and some analysts say that could be the signal sellers have run out of steam. According to Matrixport, a slump in investor mood has pushed its measures to levels that have in the past lined up with market turning points.

Crypto Sentiment At Multi-Year Lows

According to Matrixport, its Bitcoin fear-and-greed gauge has the 21-day moving average below zero and starting to turn up, which is the kind of shift that in prior episodes marked the end of broad selling.

Reports note Alternative.me’s Fear and Greed Index sits near 10 out of 100, a reading that lines up with what traders call “extreme fear.” Those are blunt, unsightly numbers. They also tend to make a few investors start looking for bargains.

Similar Readings From The Past

Past moments with similar readings came after steep drops. June 2024 and November 2025 were named by Matrixport as earlier times when market mood hit comparable depths, and each was followed by at least a temporary change in price action.

That pattern doesn’t promise a rebound every time, but it does show how deeply negative views can eventually be absorbed by buyers who step back in at lower prices.

Today’s #Matrixport Daily Chart – February 17, 2026

Bitcoin Sentiment Hits Extreme Lows ⁰— Durable Bottom Are Emerging?

#Matrixport #Bitcoin #BTC #CryptoMarkets #MarketSentiment #FearAndGreed #RiskManagement #Volatility #CryptoResearch pic.twitter.com/WxJg3xrHSf

— Matrixport Official (@Matrixport_EN) February 17, 2026

Frank Holmes of Hive says Bitcoin is about two standard deviations below its 20-day trading norm — a rare reading seen only a few times in five years. Reports note that these extremes have historically produced short-term bounces over the following 20 trading days.

Bitcoin itself has been moving sharply: it briefly climbed above $70,000 over the weekend, only to fall back about 2.5%, trading near $68,750 at the time of writing.

Other trackers report it dipped close to $60,000, marking one of the deepest drops in several years. Traders are keeping a close eye on US GDP and income data, which could influence risk appetite and the next moves for crypto markets.

Reports say Matrixport still warns that prices could move lower before any meaningful bottom is cemented. The firm points to a cyclical link between mood and price — deep pessimism often precedes an inflection, but cycles can be messy and extend.

Selling pressure can be exhausted and yet new headlines or data can push prices down further before buyers feel confident enough to stay.

Some investors see present readings as an attractive entry point, while others prefer to wait for clearer confirmation from price and volume.

Long-term holders often point to the underlying network metrics and institutional interest as reasons to remain optimistic, and their positions are being watched closely.

Short-term players, by contrast, are taking a cautious stance, using stops, scaling entries, or sitting out until signals firm up.

Featured image from Unsplash, chart from TradingView