Cryptocurrency market sentiment indicators experienced a turning point on Friday — finally bidding farewell to the "Extreme Fear" phase that lasted for several weeks. According to the widely tracked Fear and Greed Index, the latest reading reached 29 points, marking the first time since December 12th that it has exited the "Extreme Fear" zone and also hitting a 21-day high. At the time of writing, Bitcoin is priced at $88,995.

Interestingly, the market emerging from deep fear is often a positive signal for trading communities. Many analysts point out that prolonged periods of "Fear" or "Extreme Fear" may indicate that buying opportunities are brewing — after all, such extreme emotions often precede a trend reversal. Crypto entrepreneur Brian Rose recently stated on social media that the "risk-reward ratio is at an all-time high," emphasizing that the sentiment index has been in the fear zone for a full 8 weeks. In comparison, the cycle of the April 2025 decline (triggered by global trade policy adjustments) was even shorter.

How do traders typically use this indicator? Simply put — buy when fearful, sell when greedy. Since early November, the index has been hovering in the fear zone. As we enter 2026, market sentiment appears more complex: some lament losses, while others celebrate gains; holders are beginning to feel proud of their profits, and the entire community shows resilience. Although the market is still in a slow recovery phase, this signal is worth paying attention to.