“Crypto Fear and Greed Index” has now been dragged down to the single-digit level of “9,” placing it in the “Extreme Fear” range. Compared with last week’s 11 and 48 a month ago, the market’s pessimism is evident.

When these extreme data points light up red at the same time, it usually means that the “floating” positions—those that are sensitive to price and prone to panic selling—have largely been washed out.

However, Checkonchain has also issued a warning: don’t assume that “there’s nowhere left to drop” means a V-shaped reversal is immediately on the way. The so-called “bottoming out” is often a long and painful process; after an episode of panic-driven “capitulation selling,” what may follow is a months-long period of sideways consolidation. The boredom and grind during this time are the real trials for investors who choose to stay.