The pattern being formed back in then in 2019 after the rise to around $14K was a descending triangle. However you want to interrupt this, it was lower highs with a horizontal weakening support. Thus there was a lot of fear that price would fall back down to $6K or lower, which eventually happened. If the market is extremely fearful, or greedy or that matter, it does not suggest a buy or sell. For example the market was already getting greedy around $5K before reaching $14K, so if anything it suggests that the price is likely to continue higher (as long as the greedy is maintained). Likewise with the fear sentiment.


This is simply because market sentiment doesn't often align with other technical signals. Market sentiment is usually wrong as it's based on it's participants.