When panic approaches extreme levels, are opportunities also near?

When Bitcoin's decline approaches historical extremes, the most intuitive market feeling is two words: panic.
But a review of past deep retracements shows that extreme declines often correspond with extreme emotions. Whether during the early bull-bear transition phase or during macro liquidity contraction cycles, Bitcoin's staged “deep squat” is always accompanied by a wave of liquidations and confidence collapse.
The question is: are these extremes the end point or a relay?
Historical experience indicates that when declines approach the statistical limit range, short-term volatility will significantly increase, and bearish momentum will gradually weaken, but this does not mean an immediate reversal. True bottoming usually involves:
✔ Decreased trading volume
✔ Lower volatility
✔ Marginal easing of panic sentiment
In other words, extreme declines are a prerequisite for an “emotional bottom,” but not a guarantee of a “price bottom.”
The current market is more like a risk asset re-pricing phase. If macro liquidity does not significantly improve, the rebound space may be limited; but if funds start seeking highly elastic assets again, historical extreme zones often become medium- to long-term investment windows.
Panic makes people flee; rationality makes people observe.
The real question is not “Will it fall again,” but whether you have a clear position structure and risk management.
Extremes are not the answer, but signals.
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