Matrixport Reports Exhaustion of Bitcoin Selling Pressure

Analysts at Matrixport have observed a significant decline in sentiment within the cryptocurrency market, potentially signaling a reduction in selling pressure and the formation of a "durable bottom" for Bitcoin. This comes as the market sentiment has reached extreme lows, which could indicate a buying opportunity.

Matrixport's fear and greed index has shown signs of stabilization, with the 21-day moving average dipping below zero and starting to rise again. Such a trend suggests that the selling pressure may have peaked. Historically, periods of deeply negative sentiment have been associated with favorable entry points for investors, although experts warn that short-term price drops could still occur.

"Given the cyclical relationship between sentiment and price dynamics, the market is likely approaching a turning point," Matrixport indicated.

This sentiment shift mirrors similar patterns observed after significant market downturns in June 2024 and November 2025. Additionally, the widely used fear and greed index from Alternative.me has fallen to its lowest point since June 2022, scoring just 10 out of 100.

If Bitcoin ends February in negative territory, it would register five consecutive months of losses, the longest stretch since 2018. Frank Holmes, chairman of Hive, noted the cryptocurrency is currently experiencing an unprecedented oversold condition, trading two standard deviations below its 20-day average, a rarity that has only occurred three times in the past five years.

"Historically, such extremes have favored short-term rebounds within the next 20 trading days," Holmes stated.

Despite the current volatility, Holmes expressed long-term optimism based on strong underlying fundamentals. Meanwhile, analysts from K33 Research believe Bitcoin's recent decline to $60,000 on February 6 could represent a local bottom, while Standard Chartered has suggested a possible drop to $50,000 could occur.