- The Fear and Greed Index recorded a rare -91 score, indicating intense market fear during an ongoing bull phase with cautious sentiment.
- Historical data shows market bottoms often form during extreme fear periods, offering profitable entry points once recovery momentum resumes.
- Despite persistent fear readings, the bull market structure remains intact, allowing investors time to position strategically before sentiment improves.
The Fear and Greed Index indicates an unusual stage of utmost fear, which is an indicator of fearful investor attitude despite an ongoing bull run. This change is due to traders’ reluctance for success despite historically positive results under similar circumstances.
Extreme Fear Reading Reaches Rare Bull Market Levels
According to Darkfost, the market’s sentiment indicator recently hit an extreme fear zone, reaching a score of -91 on October 16. The indicator, which operates on a scale from +100 to -100, differs from the traditional Fear and Greed Index. Such a low score is uncommon during a bull market phase and typically reflects high anxiety among market participants.
Throughout this cycle, history has demonstrated that market bottoms have often been established at times of sheer fear. Those investors who acted boldly at those junctures have historically realized good returns once the situation reversed. This present reading is consistent with past signals that preceded profitable buying opportunities.
The index has stayed at low levels for quite a while now. This suggests that confidence in the market is still pretty fragile. Most investors keep acting with caution. They do this even as wider trends lean bullish. All of it points to a market environment that is slowly getting over earlier swings in volatility.
Buying Fear Over Euphoria in the Current Cycle
In his analysis, Darkfost emphasized that “it’s better to buy fear than euphoria” as long as the bull market remains intact. This approach aligns with contrarian investing behavior, where traders position themselves when sentiment is weakest.
He noted that this sentiment gauge, unlike traditional indicators, offers a more dynamic reflection of emotional extremes during active bull runs. The -91 reading ranks among the most extreme seen in this market phase, reinforcing the potential for a near-term rebound if past patterns repeat.
Yet, the recovery remains uneven. The indicator’s struggle to rebound underscores ongoing caution among participants who are awaiting confirmation of renewed upward strength before increasing exposure.
Investors Maintain Caution Despite Ongoing Bullish Structure
Though the bigger picture still points towards bulls, the mood indicator is measured optimism. The period of fear-driven hesitation could go on for weeks, creating strategic opportunities for smart investors.
Darkfost observed that these consolidation phases often allow traders time to accumulate positions before sentiment improves.History suggests that extended periods of fear have preceded stronger rallies in previous cycles.
However, he advised that traders must stay on guard for potential trend defeats should Bitcoin (BTC) breach key levels of support. So far, no such breakdown has been seen, with the bull market formation remaining intact and investor fear holding sway.
