Fear and Greed Index Hits Extreme Fear Zone as Bull Market Holds Steady

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 signals a rare phase of extreme fear, indicating cautious investor sentiment even amid a continuing bull market. This shift reflects traders’ hesitance despite historically profitable outcomes during similar conditions.

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, historical data shows that market bottoms have often formed during extreme fear periods. Investors who acted decisively during these phases have historically realized strong returns once recovery began. The current reading aligns with past signals that preceded profitable buying opportunities.

However, the index’s persistent low levels suggest that market confidence remains fragile. Many investors continue to exercise caution despite broader bullish trends, signaling a market environment still recovering from earlier 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.

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