- Santiment tracked four major FUD spikes over seven months, Bitcoin price rallies every time negative sentiments spiked.
- Social volume and weighted sentiment offers insights into Bitcoin during retail panic.
- Bitcoin sentiment on September 16 was 64% bullish, yet prices dropped.
Bitcoin crowd sentiment has turned into a key indicator of future price movements, with recent data showing strong rallies have often come after negative sentiment spikes. In the past seven months, the most extreme fear periods were followed by solid price rebounds.
Negative Sentiment Signals Price Rebounds
According to new data from Santiment, four of the most bearish sentiment days for Bitcoin between March and October 2025 were followed by notable rallies. The analytics firm tracked social sentiment levels and found that when fear peaks, prices tend to recover. The insight is based on how retail traders react emotionally to news, creating potential entry points for contrarian buyers.
For example, on April 5, a surge in retail FUD over global tariffs led to a 26.5% Bitcoin price increase within 19 days. Similarly, June 21 saw fears rise due to geopolitical tensions involving Iran, Israel, and the US. This was followed by an 11.8% price recovery in the next seven days. August 23 brought panic over the Federal Reserve’s policy stance, yet Bitcoin gained 11.3% over the following 48 days.
Cointelegraph cited the October 10 scenario when extreme retail negativity appeared due to China’s tariffs. Just three days later, Bitcoin rose 5.5%, reinforcing the pattern.
Social Metrics Support Price Trend Reversals
Analyst Ali Martinez added insight with a chart showing Bitcoin’s price alongside social volume and weighted sentiment. When sentiment hits deep negative levels, price rebounds often follow. This was evident in late March and again at the end of September.
During periods of heavy bearish commentary, social volume spikes sharply. These spikes signal increased market attention, which often occurs around price bottoms. In both cases, rising attention coincided with Bitcoin shifting from decline to recovery, showing how market psychology interacts with price action.
Monitoring Crowd Mood in Bearish Markets
On September 16, Coin Bureau posted that 64% of sentiment around Bitcoin had turned bullish—the highest in months. However, at that time, price action remained under pressure. The price dropped nearly 12% from $122,500 in mid-August to $107,500 by early September.
Despite the rise in bullish sentiment, price lagged.Consistent selling pressure that happened with short-lived rallies failed to gain traction, keeping the overall trend bearish.
Santiment’s suggest that when bearish sentiment becomes extreme, it can mark a key shift point especially when confirmed by on-chain and social metrics.
