BroadChain has learned from Cointelegraph that on April 7, cryptocurrency market analyst Wedson noted Bitcoin's 720-day tactical bull-bear sentiment index has plunged into extreme bearish territory, suggesting long-term market fear may be approaching its end.
Historically, such low readings on this indicator have often aligned with a "final washout" phase, after which Bitcoin typically enters a more sustained recovery. For instance, when the indicator hit similar lows in 2022, Bitcoin fell over 20%; in 2018, it declined roughly 50% under comparable conditions.
Wedson cautioned that Bitcoin could see a sharp drop of around $15,000 over the next five months, implying a potential fall from current levels to near $54,000—placing the $50,000–$55,000 range as a critical support zone for BTC.
However, recent large-scale Bitcoin accumulation by strategic buyers has absorbed some selling pressure, which may help curb downside risks and reduce the likelihood of the extreme bearish scenario playing out in full.