Bitcoin market sentiment is showing early signs of stabilization as aggressive selling pressure begins to fade. On-chain data reveals that exchange net taker flow has turned positive for the first time in a month. Despite this shift, the Crypto Fear & Greed Index has plunged to record-low levels, indicating persisting extreme fear among investors even as BTC prices attempt to find a floor.
Bitcoin’s market sentiment is showing early signs of stabilization according to on-chain analysis. New findings from analytics platform CryptoQuant released on Thursday show net taker flow flipping positive for the first time in a month.
The metric, which measures the difference between market buy and sell orders, had been deeply negative since mid-January. Contributor Crazzyblockk summarized, “Bitcoin market sentiment is showing early signs of stabilization, and Binance’s 7-day Net Taker Flow reflects that shift when viewed in proper macro context.”
Crazzyblockk’s analysis noted that after reaching nearly negative $4.9 billion in cumulative net selling in early February, Binance’s seven-day taker flow has recovered to positive $0.32 billion. “The sentiment ratio has moved from roughly -3% back into positive territory, signaling a clear decline in sell-side aggression,” the blog post stated.
This shift coincides with BTC price action attempting to stabilize roughly 20% above recent 15-month lows. Market participants, however, still see a risk of stagnation below the $69,000 resistance level, a key mark since 2021’s bull market peak.
The split in market demand remains visible through the Coinbase Premium Index, which has been predominantly negative. This indicates lower U.S. spot demand compared to Asia, a status quo confirmed despite the modest price bounce.
Trading firm QCP Capital described the Premium reduction as a moderation in U.S.-led spot selling pressure. The firm tempered optimism by referencing extreme fear signals from the Crypto Fear & Greed Index.
QCP Capital wrote in its market update that sentiment remains fragile, with the index deep in extreme fear territory. The index has since dropped to just 5 out of 100, one of the lowest scores ever recorded.
