TechFlow News: On February 17, Matrixport released its daily analysis stating, “Market sentiment has fallen to a low level, with pessimism dominating. According to the ‘Greed & Fear Index,’ more sustainable short-term market bottoms typically occur after the 21-day moving average of the daily sentiment indicator crosses below the zero line and then begins to rebound. Such a shift ‘from weak to strong’ usually signals that selling pressure is nearing exhaustion and that the market is beginning to enter a recovery and stabilization phase.
Prices may still weaken further in the short term; however, historically, periods of deeply negative sentiment have often corresponded to intervals offering superior risk-reward ratios. Based on the cyclical interplay between sentiment and price, the current reading suggests the market may be approaching a critical inflection point. Going forward, close attention should be paid to whether key indicators exhibit common signs of improvement preceding a rebound.”
