Recovery signal in the "Suppression Cycle" of the crypto market: The Fear & Greed Index finally escapes the extreme fear zone

Signs of Reversal After Nearly Three Weeks of Panic

After 18 consecutive days of deep pessimism, the crypto market has shown a notable indicator in the current suppression cycle. On November 23, the Crypto Fear & Greed Index reached 28 points, officially escaping the “extreme fear” zone it has been stuck in since November 10. Although this number remains low, this shift is regarded by experts as an important psychological signal amid investors’ ongoing pressure.

Bitcoin’s price currently stands at $90.81K, reflecting the market’s efforts to recover from the dark days prior. Lead analyst Matthew Hyland called this period the “most extreme fear throughout the entire cycle” when he commented on November 15, highlighting the stress the crypto community has endured.

Market Sentiment Still Fragile Despite Improvement

These small improvements should not lead investors to excessive optimism. Data from Santiment on November 27 shows increased optimism on social media platforms, but this mainly reflects emotional reactions to price movements rather than a genuine change in the market’s fundamentals.

According to Crypto Seth, “extreme fear is still an understatement” when commenting on the overall mood. Notably, capital flow remains clearly defensive: the “Bitcoin Season” dominates with a score of 22/100, indicating that investors are still concentrating funds into Bitcoin and avoiding altcoins. This situation is typical of a market stage governed by uncertainty.

Historical Insights: Extreme Fear Phases Often Mark Market Bottoms

Trader Nicola Duke reminds the community of a historical rule: extreme fear phases often coincide with Bitcoin corrections, indicating a possible bottom. Many past extreme fear periods have led to significant recoveries or rallies, making the current period a valuable reference point for strategic investors.

However, the current macroeconomic context is more complex than ever. André Dragosch, research director at Bitwise Europe, issued a warning about deeper risks: “The last time I saw such an imbalance between risk and reward was during the COVID period”. Concerns about an upcoming recession remain hidden beneath this temporary recovery.

The Suppression Cycle May Not Be Over Yet

Although the Fear & Greed index has entered the “fear” zone from “extreme fear,” this stability remains fragile. Bitcoin remains the decisive indicator: whether it will continue to recover or fall back into volatility. The current value of $90.81K is a critical turning point—its ability to hold or surpass this level will determine whether the current calm is a true turning point or just a pause in a longer suppression cycle.

The crypto market still needs more time to prove whether this psychological improvement is solidly grounded or just a brief moment before the next storm arrives.