Bitcoin, ETH, SOL and other cryptocurrencies modestly reversed their losses from earlier in the day.
The Crypto Fear & Greed Index sentiment indicator sank to deep fear levels similar to the lows in early July and August.
Investor sentiment is so negative that a "tradable local bottom" could be close, Lekker Capital's Thompson said.
Bitcoin Price May Slide Lower on $1B Withdrawal of USDT: IntoTheBlock
Continuing downward price action in crypto may be about to reverse in a big way, at least in the short term based on the readings of one popular sentiment indicator.
Bitcoin (BTC) during Wednesday U.S. trade recovered to around $58,000 from an earlier low of $55,600, now about flat over the past 24 hours, as is ether (ETH). The broader crypto market benchmark CoinDesk 20 Index was up 1% as native tokens of Solana (SOL), Near (NEAR) and the Internet Computer Protocol (ICP) outperformed the two largest cryptos.
