The Bitcoin greed and fear index has fallen to 8, a level that was not seen since March 2020.
It is worth noting that after this happened 2 years ago, the price of the crypto reached "bottom" at $3,800.
Analysts at Arcane Research have said the index has been "in the fear area" for 56 days, which is a record. They have added:
"Market participants are no doubt tired of this, many capitulating. Historically, buying has been a profitable strategy in times of fear. However, it is not easy to catch a falling knife."
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Arcane Research has pointed out that, from a technical analysis point of view, $20,000 is a critical level for Bitcoin, as it is the peak of the previous price rise.
The firm's experts have said:
"Throughout its history, Bitcoin has never traded below the cycle peaks. Therefore, a possible visit below this level may lead to capitulation of many hodlers and deleveraging."