BITCOIN: Bitcoin analyst eyes ‘near term floor’ as crypto fear hits redline

Bitcoin’s price could be approaching its bottom this cycle as it lingers below $83,000 and market sentiment remains fearful, according to the founder of a crypto fund.

“Some broader macro data still looks poor, but it also wouldn’t surprise me if we put in a near-term floor locally given the significant level of fear and liquidations,” Bitcoin analyst and digital asset fund Capriole Investment founder Charles Edwards told Cointelegraph.

Bitcoin sentiment improves slightly despite stagnant price
Despite the Crypto Fear & Greed Index — which measures overall crypto market sentiment — tapping a more than two-year low score of 10 on Feb. 26, signaling “Extreme Fear,” Edwards said he doesn’t pay much attention to it.

Cryptocurrencies, Markets
The Crypto Fear & Greed Index has dropped significantly since its Jan. 31 “Extreme Greed” score of 76. Source: Alternative.me

“I am not a big believer in the Crypto F&G metric and strongly prefer the CNN Fear and Greed metrics, which cover the broader market. It, too, is in extreme fear today. As is the AAII sentiment survey,” he said, referring to a poll by the American Association of Individual Investors.

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On Feb. 27, Altenrnative.me’s Crypto Fear & Greed Index jumped 6 points to an “Extreme Fear” score of 16, even as Bitcoin
BTC
$79,928
showed no signs of a near-term recovery. Bitcoin is down 0.57% over the past 24 hours, trading at $82,260 at the time of publication, according to CoinMarketCap data.

Cryptocurrencies, Markets
Bitcoin is down 16.42% over the past seven days. Source: CoinMarketCap

Many observers point to macroeconomic uncertainty and concerns over US President Donald Trump’s proposed tariffs as key reasons for Bitcoin’s and the broader crypto market’s decline. Since Trump’s inauguration on Jan. 20, when Bitcoin hit an all-time high of $109,000, the asset has dropped nearly 24.5%.

Edwards sees the flashing red sentiment indicators as a sign of a market rebound. “We have quite a lot of bearish ‘sentiment’ confluence. Which historically has been a good marker for a potential dip/reversal opportunity,” he said.

Crypto investment research firm Sistine Research said that Bitcoin’s recent dip to $82,242 could mark a near-term bottom.

“Imo ~30% odds that was pico low on BTC,” Sistine Research said in a Feb. 27 X post. However, it warned that if the stock market keeps dropping in the coming days, Bitcoin could find a bottom at $73,000 instead — a level it hasn’t seen since Nov. 7.

Related: Bitcoin whale ‘Spoofy’ accumulates $344M BTC as price tumbles below $90K

The Standard and Poor’s 500 (S&P 500) is down 4.13% over the past five trading days, as per Google Finance data.

CryptoQuant founder and CEO Ki Young Ju recently said the chances of Bitcoin dropping below $77,000 “are low.”

Bitcoin still has “room to run”
Meanwhile, the global economist of crypto exchange Kraken, Thomas Perfumo, said in a Feb. 26 statement that Bitcoin’s structural indicators “suggest that the broader crypto market still has room to run.”

“Right now, dominance remains strong in the low 60s — indicating that market momentum hasn’t yet reached a speculative peak. At the same time, stablecoin market cap has grown 11% year-to-date, signaling continued onchain capital deployment,” Perfumo said.

Collective Shift founder Ben Simpson recently told Cointelegraph that the current market conditions could present a buying opportunity for crypto investors.