- Bitcoin sentiment has gone back into the negative, reflecting skepticism within the market even as the price remains stable above $96K. This is indicative of risk-averse investor sentiment.
- Large Bitcoin accounts keep gaining, reflecting optimism about the long-term value of the currency, while holdings in smaller accounts have gone down.
- History has revealed the negative sentiment tends to occur before price rallies, with market reversal opportunities presenting themselves due to low investor sentiment.
Bitcoin remains steady above $96,000, but market sentiment has once again slipped into the negative zone, signaling growing investor uncertainty.
Negative Bitcoin Sentiment Shows Signs of Market Disbelief
Bitcoin sentiment has fallen further, according to Alphractal, who shared a detailed view of how emotion continues to diverge from price action. Despite Bitcoin maintaining strength above $96,000, the 7-day average sentiment reveals rising negativity in the market.
This metric has proven historically reliable in identifying local bottoms. Alphractal noted that in most previous cases when sentiment became extremely bearish, Bitcoin reversed direction and climbed. This pattern suggests that emotional lows often precede price rebounds. However, the raw daily data continues to show strong market disbelief, even at current levels.
Several factors may be driving this emotional downturn. Alphractal points to possible macroeconomic and political developments or a fading sense of optimism about crypto’s path in 2025. The combination of external pressure and emotional fatigue appears to be weighing heavily on sentiment.
Bitcoin Sentiment Alone Is Not a Guarantee in Bear Cycles
While falling Bitcoin sentiment has often marked bottoming points, Alphractal urges caution. During extended bear markets such as 2022, this same negative sentiment persisted as prices continued falling.
This comparison underlines the need for a wider view. Sentiment should not be analyzed in isolation. Alphractal stresses the use of Alpha-grade metrics, which provide a deeper understanding of current market dynamics.
The current divergence between sentiment and price raises important questions about the true strength of this phase. It suggests that although prices remain elevated, trust in the rally remains low among retail participants.
Emotional Weakness May Set the Stage for Reversal
Bitcoin’s present price stability, paired with emotional exhaustion, may indicate an opportunity for trend formation. Negative Bitcoin sentiment in past cycles often created the conditions for recovery.
With raw sentiment data again moving into bearish territory, the market could be approaching another inflection point. Whether that leads to upside will depend on broader confirmation beyond just emotional readings.
