Matrixport: Market sentiment has fallen to a low level, and prices may weaken further in the short term.

Matrixport, in an article published on the X platform, stated that market sentiment has fallen to a low level, with pessimism dominating. Looking at the "Greed and Fear Index," more sustainable bottoms typically appear after the 21-day moving average of the daily sentiment indicator crosses below zero and then rebounds. This "weak-to-strong" shift usually indicates that selling pressure is nearing its end, and the market is entering a recovery and stabilization phase. Short-term prices may still weaken further, but historically, deep negative sentiment has often corresponded to a more favorable risk-reward range. Based on the cyclical correlation between sentiment and price, the current reading suggests the market may be approaching a key turning point. The key focus going forward will be whether core signals show signs of improvement typical of pre-rebound periods.