Analysis: Bitcoin has been in the "extreme fear" zone for a consecutive period, and historical data suggests it may rebound from the bottom

2025-03-05 20:32:40

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ChainCatcher news, according to CoinDesk, the Fear and Greed Index has shown "extreme fear" readings for several consecutive days, which may indicate that Bitcoin prices are about to bottom out and rebound. Historically, similar situations have triggered a 200% increase in Bitcoin prices.

Vincent Liu, Chief Investment Officer of trading firm Kronos Research, stated: "Bitcoin has fallen into the 'extreme fear' range, which is the first time since September 2024, when Bitcoin was trading at $53,000. In the three months following that, Bitcoin's value doubled, suggesting a potential buying opportunity for savvy investors."

The Fear and Greed Index is a measure of investor sentiment, ranging from 0 (lowest sentiment) to 100 (highest sentiment). Recently, as Bitcoin prices fluctuated between $83,000 and $95,000, the index has remained in the "extreme fear" zone. This index is typically viewed as a short-term contrarian indicator, based on price volatility, momentum, social media sentiment, Google Trends data, and Bitcoin's overall market share.

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