Bitcoin (BTC) sentiment on social media turned sharply negative on August 19 after the top cryptocurrency slipped below $113,000. However, analysts now suggest that the crowd’s sudden bearish tilt could create a potential setup that historically favors contrarian investors. A Dramatic Shift in Market Psychology According to data analytics platform Santiment, the mood across crypto communities on social platforms has turned from bullish to ultra bearish, following Bitcoin’s failure to hold above $113,000. Santiment reported that August 19, which saw BTC trading around $112,647 at one point, became the day with the most negative social media sentiment since June 22, when geopolitical tensions triggered a wave of panic selling. The firm’s metrics showed a clear flip, with negative commentary on BTC outpacing positive remarks for the first time in weeks. This type of extreme crowd fear, Santiment suggested, has frequently come just before a market recovery, positing that prices often move in the opposite direction of crowd expectation. This pattern was evident in June when the panic over U.S. airstrikes proved to be an excellent moment to buy the dip, and again in July when continued optimism was followed by a decline. The market intelligence platform is now suggesting that with the crowd seemingly giving up in this latest rout and panic selling, it could be a good sign of an “actual upcoming dip bounce.” “Historically, this negative sentiment is a good thing for the patient traders who have been waiting for an opportunity to buy or add on while there is ‘blood in the streets’ and fear is maximized.” This psychological shift is also reflected in on-chain behavior. According to a recent analysis by CryptoQuant, BTC holders of 3 to 5 years, who bought during the 2021 cycle, are acting with the impatience of novice traders. Even though they have been classified as long-term holders, their tendency to sell during drawdowns is indicative of weaker hands, and questions are being asked about how they could affect market directions. Analyzing the Price Trajectory Bitcoin’s price action tells the story of this sudden sentiment drop. After establishing a new all-time high of $124,457 just six days ago, the OG crypto has since pulled back by approximately 8.5%. Over the past seven days, BTC has decreased by 4.9%, with its weekly price range fluctuating from close to $124,000 to under $112,000 according to data from CoinMarketCap. However, even with this recent weakness, Bitcoin’s yearly performance is nothing to sniff at, with the asset gaining 87.4% in that time. Furthermore, its nearly 5% weekly loss isn’t as bad as the global crypto market’s collective 8.1% drop in the same period, indicating a relative strength that suggests capital may not be entirely fleeing the ecosystem but simply rotating. The post Is This the Moment to Buy Bitcoin as BTC Sentiment Sinks to Fear? appeared first on CryptoPotato .
