COINOTAG News reports that on February 26th, the cryptocurrency market witnessed a substantial decline, with on-chain metrics hinting that Bitcoin’s (BTC) value may have reached a key support level. Data from TradingView indicates that the total market capitalization of cryptocurrencies plummeted to approximately $2.7 trillion, reflecting a decrease of almost $1 trillion since its height in December 2024. Market analysts suggest that the recent sell-off could signify a potential local bottom.
Andre Dragosch, Research Director at Bitwise Europe, noted that the crypto asset sentiment index has fallen to its lowest point since August. This drop aligns with the recent unwinding of the yen carry trade that previously caused Bitcoin to stabilize around $49,000 during that time. The sentiment index currently exhibits strong contrarian buy signals, indicating that despite the prevailing bearish outlook, the downside risk may be somewhat limited. Given these price levels, the risk-reward dynamics look increasingly attractive for investors.