'The Worst Is Behind Us': Bitcoin Market Conditions Mirror FTX Bottom, Analysts Say
According to analysts, the current state of the leading cryptocurrency market resembles the period that followed the collapse of the FTX crypto exchange in November 2022. Several technical indicators for Bitcoin have reached levels not seen since the serious market downturn caused by this event.
For example, the Fear and Greed Index, which reflects the sentiment of market participants, has recovered to a level of 30, which is traditionally considered 'neutral'. Experts note that an index value below 20 indicates 'deep fear', and above 50 - a state of 'greed'. The last time the index was in the 'neutral' zone was in October 2022, just before the FTX crash.
In addition, the trading volumes of the leading cryptocurrency have returned to levels typical of the first months of 2022. According to analysts, this indicates that the 'worst is behind us' and the market is now in a period of accumulation before the next price rally.
However, experts warn that complete restoration of market participants' trust in crypto assets has not yet occurred. This may require a longer period of Bitcoin price consolidation in the current price range.