Matrixport: Crypto Decline Ends, Stabilization Begins

▲ Virtual Asset

The cryptocurrency market, which had been mired in extreme pessimism, is entering a phase of stabilization, with analysis suggesting the downtrend may be coming to an end.

According to NewsBTC on Feb. 17 (local time), crypto services firm Matrixport recently reported that the market sentiment index has reached extreme pessimistic levels and is now showing gradual signs of recovery. Matrixport cited its proprietary Bitcoin (BTC) Fear and Greed Index, noting that it has recently entered bottom territory. In particular, a pattern in which the 21-day moving average of the index drops below zero and then rebounds has historically served as a key signal marking sustained market bottoms.

Analysts assess that the current market environment is undergoing a process in which selling pressure is gradually being absorbed. In a report, Matrixport explained that the rebound in the fear index signals that forced selling has been exhausted, a prerequisite for price stabilization and the establishment of new upward momentum. Historically, periods when sentiment bottoms out and begins to recover have presented strong buying opportunities.

On-chain data also reflects extreme fear among investors. Widespread pessimism among market participants has coincided with signs that asset liquidation has reached its peak. Experts suggest that as this oversold phase concludes, the market’s underlying structure is strengthening, potentially paving the way for a strong rebound depending on changes in the macroeconomic environment.

Bitcoin’s price remains volatile amid uncertain macroeconomic indicators, but technical signals point to the possibility of bottom-fishing inflows. Matrixport expects overall market volatility to subside and the balance between buying and selling to gradually recover, easing the atmosphere of fear across the broader cryptocurrency ecosystem. Assets that have endured downward pressure are likely to continue consolidating their price support levels.

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