Bitcoin Drops Below $113K, Retail Sentiment Turns Extreme Bearish
Bitcoin fell to a low of $112,656 on Coinbase after breaking under the $113,000 support level, triggering panic selling among retail traders. According to blockchain analytics firm Santiment, social sentiment among retail traders hit its most negative point since June 22, when Middle East conflict fears sparked widespread sell-offs. Santiment notes that extreme bearish sentiment on social media often presents a contrarian buy signal, especially when market fear is high. The Bitcoin Fear & Greed Index dropped to 44/100, marking the lowest level since late June. Historical data from bull cycles in 2017 and 2021 show similar “bear trap” pullbacks—significant short-term declines followed by renewed all-time highs. If history repeats and Bitcoin retraces to around $90,000 next month, traders could position for a rebound toward new records. Primary Keywords: Bitcoin, retail sentiment; Secondary Keywords: social sentiment, bear trap, fear & greed index.
Bullish
The sudden flip to extreme bearish retail sentiment signals a classic contrarian buying opportunity. Historical precedents in the 2017 and 2021 bull cycles saw similar pullbacks of 23%–36% labeled as “bear traps,” followed by fresh all-time highs within months. While short-term traders may face further downside amid panic selling and a Fear & Greed Index at 44/100, longer-term investors can view the current social sentiment low as an attractive entry. If Bitcoin revisits the $90,000 support region next month, technical buyers and institutional allocators may accelerate purchases, driving a renewed upward trend toward new peaks.