Crypto market sentiment moved out of “extreme fear” territory, reaching its highest level in 21 days despite Bitcoin trading below $90,000.
The widely followed sentiment index posted a score of 29 on Friday, placing it back in the “fear” category.
Bitcoin was trading near $88,995 at the time of the update, remaining under recent psychological resistance.
Analysts said the prolonged period of fear could signal improving risk-reward conditions for the market.
Risk/Reward is the best it has ever been.
Brian Rose said.
He noted that sentiment had remained fearful for eight consecutive weeks, longer than during the April 2025 market crash.
That downturn followed US President Donald Trump’s announcement of global trade tariffs.
Crypto traders often use sentiment indicators to identify potential buying or selling opportunities.
Analytics firm Santiment said market participants are entering 2026 with mixed emotions.
Some mourn personal losses while others celebrate crypto gains and community resilience.
Santiment said.
The firm added that engagement remains strong despite recent market challenges.
Other indicators suggest investors remain in a risk-off posture.
CoinMarketCap’s Altcoin Season Index showed a Bitcoin Season score of 23 out of 100.
Among top cryptocurrencies, Sky posted the largest weekly decline while Story recorded the biggest gain.
At the time of reporting, Bitcoin price was $88,659.56.