Bitcoin Bearishness Surges as It Falls to $76,000, Potentially Signaling Rebound
Summary
- On-chain analytics firm Santiment said pessimism among retail investors toward Bitcoin has intensified.
- Bitcoin fell to the $76,000 level as rising US Treasury yields, a spike in oil prices and geopolitical risks in the Middle East weighed on risk sentiment.
- Santiment said excessive pessimism has historically been a signal that the crypto market could be more likely to see a short-term rebound.
Forecast Trend Report by Period
Bitcoin fell to the $76,000 level, fueling deeper pessimism among retail investors. That gloom may instead point to a potential rebound, according to an analysis.
On May 18, on-chain analytics firm Santiment wrote on X that bearish views in Bitcoin-related social media posts had overtaken bullish ones. It said that was the first time since April 21.
Bitcoin briefly dropped to the $76,000 level that day, extending its weak run. It was trading at $76,646.55 on Binance's USDT market, down 0.62% from a day earlier. Rising US Treasury yields, a spike in oil prices and geopolitical risks in the Middle East have weighed on sentiment toward risk assets.
Santiment said excessive pessimism can itself signal a greater chance of a short-term rebound. The crypto market has historically tended to move against public expectations. As bearish sentiment among retail investors spreads, the chances of a rebound can rise, it added.
Smaller investors have been selling Bitcoin in response to the recent drop, Santiment said. That trend also suggests expectations for further declines have become extreme.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.