Matrixport: Market Sentiment Hits Low, Short-Term Prices May Still Weaken Further

Odaily News Matrixport posted on platform X, stating that market sentiment has fallen to a low level, with pessimism dominating. Looking at the "Greed and Fear Index," more sustainable phase bottoms typically occur after the daily sentiment indicator's 21-day moving average crosses below the zero line and then begins to rebound. Such a "shift from weakness to strength" usually indicates that selling pressure is nearing its end, and the market is beginning to enter a phase of recovery and stabilization.

Short-term prices may still weaken further, but historically, when sentiment turns deeply negative, it often corresponds to a more favorable risk-reward ratio range. Based on the cyclical linkage between sentiment and price, the current reading suggests the market may be approaching a critical inflection point. The focus going forward is to observe whether core signals show signs of improvement commonly seen before a rebound.