Bitcoin’s price has experienced fluctuations in the past 24 hours, dropping to $95K after nearing the $100K level. The initial recovery from a crash to $92K last week was short-lived, with the market now experiencing a downturn. This price slump has led to a surge in fear, uncertainty, and doubt (FUD) among traders, reaching record levels of negativity for the year.
Market intelligence platform Santiment’s data reveals a significant imbalance between negative and positive comments regarding Bitcoin on social media. For every four positive remarks, there are five negative ones, indicating widespread market pessimism. However, historical data shows that such extreme sentiment levels often precede bullish reversals, as seen in previous price surges following periods of high negativity.
The current surge in negativity could potentially be a positive sign for Bitcoin, according to Santiment. Contrarian investors view excessive FUD as an opportunity to capitalize on market uncertainties, as these sentiments often indicate overselling and potential reversals. Despite the uncertainty surrounding Bitcoin’s next move, the sentiment metrics suggest a possible bullish recovery that may surprise many market participants.
The overall crypto market fear and greed index has dropped to a neutral point of 59, compared to a greed score of 77 just last week. This indicates a shift in market sentiment towards caution, with previous extreme levels of greed now moderating. At the time of writing, Bitcoin is trading around $96,500, reporting a 2.5% loss over the past 24 hours.
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