Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and XRP (CRYPTO: XRP) are reeling from double-digit percentage crashes, with crypto sentiment deep in extreme fear.
Short-Term Relief Rally On The Table?
Santiment data shows trader sentiment has flipped sharply bearish on Bitcoin and Ethereum following the sell-off, with Bitcoin registering extremely bearish readings and Ethereum turning decisively negative.
XRP remains the most optimistic among major tokens.
Historically, periods of widespread retail fear and disbelief have often preceded short-term relief rallies, particularly when pessimism becomes crowded across the broader crypto market.
VanEck Head of Digital Assets Research Matthew Sigel said weakening sentiment has previously created attractive long opportunities.
He pointed to the BTC/gold ratio as a key metric to watch, noting it is testing a critical multi-year support level.
Bear Market Experts Reappear
CryptoCon noted that calls for a new cycle bottom are resurfacing, like when Bitcoin traded near $80,000, but said this time the narrative feels more convincing.
Weekly RSI and other momentum indicators are already sitting near historical cycle-bottom levels, increasing the odds of a reflexive bounce.
However, long-term holders remain largely inactive, suggesting true capitulation has yet to occur.
CryptoCon added that the sudden rise of “bear market experts” is telling, noting they were largely absent near the market highs.
For now, the preferred strategy remains caution.
Waiting for genuine apathy toward crypto, rather than eager bottom-buying, may offer a clearer signal of a durable turning point.
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