BTC price analysis from MetaEra shows the CO sentiment indicator has shifted from -11.1 to -8.85, suggesting the market may have reached an extreme pessimism low. The BTC market update recommends a cautious long position with no more than 20% exposure. Strong support is established near 77,000, and traders are advised to build positions between 77,000 and 77,300. A short-term target of 78,000–78,500 is set, with a stop-loss placed below 76,500.

Investment recommendation: Proceed with caution when going long

Recommended position: Light position (no more than 20%)

Reason:

1. Sentiment indicators show the market has completed its extreme pessimism bottom, with CED rebounding from a low of -11.1 to -8.85.

2. Prices exhibit resilience during periods of extreme pessimism, repeatedly rebounding against the trend.

3. Technical analysis shows strong support near $77,000, with a short-term consolidation and recovery phase likely ahead.

4. A divergence between sentiment and price often indicates a reversal opportunity, as extreme pessimism frequently coincides with price reversals.

Trading Strategy:

You can gradually establish long positions in the range of 77,000 to 77,300.

- Short-term target range: 78,000–78,500

- Stop-loss level: Below 76,500

Risk Disclaimer:

1. Market sentiment remains in a deeply pessimistic range (CED = -8.85), and full recovery will take time.

2. If the support at 76,500 is broken, it could trigger a new downward move.

3. The overall market environment remains weak; maintain cautious position sizing and strictly enforce stop-losses.

4. It is recommended to monitor whether subsequent sentiment indicators continue to improve.

Key Observations:

Can CED sustain a rebound above -5?

Can the price effectively hold at the 78,000 level?

Is the volume increasing in line with the rebound?

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