Bitcoin Slump Fuels Fear, but Extreme Bearishness May Signal Rebound
Summary
- On-chain analytics firm Santiment said BTC fell to $76,000, fueling bearish sentiment across social media.
- Santiment said bearish views overtook bullish views for the first time since April 21, but added that a short-term rebound could become more likely because markets tend to move against broad public sentiment.
- The market is watching whether BTC's key support level holds and how investor sentiment shifts as US Treasury yields rise, expectations for rate cuts weaken, and international oil prices surge.
Forecast Trend Report by Period
Bearish sentiment is spreading quickly across the crypto market as Bitcoin (BTC) declines, according to a new analysis. Some observers also say excessive fear could point to a short-term rebound.
On May 18, on-chain analytics firm Santiment wrote on X, formerly Twitter, that bearish views on social media increased as BTC fell to the $76,000 level.
Based on on-chain data, bearish commentary has surpassed bullish commentary for the first time since April 21, Santiment said.
The firm added that markets generally tend to move against broad public sentiment.
As a result, the more fear-driven selling by retail investors expands, the greater the chance of a short-term rebound, it said.
The crypto market has recently seen heightened volatility as US Treasury yields rise, expectations for interest-rate cuts weaken and international oil prices surge.
Market participants are watching whether BTC can hold a key support level and how investor sentiment changes.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
