The crypto sentiment indicator has moved from a state of severe fear, and various social media metrics indicate a trend towards a more optimistic view on Bitcoin.

After spending 18 days at the bottom of a popular index for crypto sentiment, early signs of recovery are emerging.

The Crypto Fear & Greed Index, an index that gauges overall crypto market sentiment, registered a “Fear” score of 28 on Saturday, marking the first instance since November 10 that it produced a score above the extreme fear level.

This lengthy period of pessimism, which marked the worst levels for much of November—a month historically noted for Bitcoin’s best performance—has caught the attention of the wider crypto community.

“Extreme Fear” readings have often indicated market bottoms, according to traders.

On November 15, crypto analyst Matthew Hyland noted that the index had reached “the most extreme fear level” of this cycle. “A path like this for BTC Dominance would now be max pain,” Hyland remarked at that moment. Just a few days later, on November 23, analyst Crypto Seth pointed out that “Extreme Fear is an understatement.”

Nonetheless, trader Nicola Duke shared that intense fear levels on the index have historically represented local bottoms for Bitcoin.

Image The Crypto Fear & Greed Index registered a “Fear” score of 28 on Saturday. Source: alternative.me

More indicators suggest a recovery might be underway. Crypto sentiment platform Santiment reported on Wednesday that Bitcoin was experiencing “generally bullish sentiment” after its price climbed back to nearly $92,000, highlighted by its bullish-to-bearish sentiment indicator on social media.

Crypto market still appears cautious

Santiment also noted that social media discussions around Bitcoin have been primarily centered on price volatility alongside institutional activities like ETFs and treasury purchases.

However, market participants seem to remain cautious and in a risk-averse mode. According to CoinMarketCap’s Altcoin Season Index, it firmly indicates “Bitcoin Season” with a score of 22 out of 100, a metric that reflects fluctuating between Altcoin and Bitcoin season values.

On Friday, André Dragosch, head of research at Bitwise Europe, expressed that Bitcoin’s price has been improperly evaluated due to a misinterpretation of the overall macroeconomic conditions, especially amid rising recession fears. “The last time I saw such an asymmetric risk-reward was during COVID,” Dragosch commented.