Bitcoin analysts eye potential market bottom amid fearful sentiment

Bitcoin's (CRYPTO:BTC) price may be nearing a cycle bottom as it remains below $83,000 amid fearful market sentiment, according to Capriole Investment founder Charles Edwards.

Edwards noted that while some macro data appears weak, the significant level of fear and liquidations could indicate a near-term floor.

Despite the Crypto Fear & Greed Index reaching a two-year low of 10 on February 26, signaling "Extreme Fear," Edwards stated he prefers broader market sentiment indicators such as the CNN Fear and Greed metrics and the AAII sentiment survey, which also reflect extreme fear.

The Crypto Fear & Greed Index increased slightly to 16 on February 27 but remains in "Extreme Fear."

Since Trump's inauguration on January 20, when Bitcoin reached an all-time high of $109,000, the asset has dropped nearly 24.5%.

Macroeconomic uncertainty and concerns over Trump's proposed tariffs are potential reasons for the decline in Bitcoin and the broader crypto market.

Edwards views the bearish sentiment as a sign of a potential market rebound.

Sistine Research suggested that Bitcoin's recent dip to $82,242 could mark a near-term bottom.

They estimate a 30% chance that it was a "pico low," but cautioned that further stock market declines could lead to a bottom at $73,000.

Despite this near-term bearishness, Kraken's global economist, Thomas Perfumo, indicated that Bitcoin's structural indicators "suggest that the broader crypto market still has room to run."

Perfumo highlighted that dominance remains strong in the low 60s, indicating that market momentum hasn't reached a speculative peak and the stablecoin market cap has grown 11% year-to-date, signaling continued onchain capital deployment.

At the time of reporting, the Bitcoin (BTC) price was $79,385.23.