Analyst: Market Sentiment Index Hits "Extreme Negative Value," Investor Confidence in Bitcoin Trend Nearing Collapse

BlockBeats News, March 2nd, On-chain data analyst Murphy posted on social media, stating that the current market investor confidence index has reached an "extreme negative value," staying below -0.3 since February 18th. The interpretation of this signal is "very simple," indicating that investors' confidence in BTC's trend is on the verge of collapse.

Murphy stated that rebuilding confidence after such a market collapse is unlikely to happen in the short term, with the time to emerge from the gloom likely to be measured on a "monthly" or even "quarterly" basis.

However, historical data shows that when the confidence index drops to the current level, a rebound is usually imminent, or the proximity to the "bear bottom" is increasingly close.