Bitcoin Sentiment Hits December Low amid Panic Selling Surge
According to Santiment data, Bitcoin sentiment across X, Reddit and Telegram has plunged to its weakest level since December 11, 2023, as bearish comments now outnumber bullish ones. The spike in bearish mentions reflects retail panic selling at a two-year high and may amplify Bitcoin market volatility. Historically, extreme fear in social media sentiment has preceded rapid rebounds—in late 2020 and mid-2022—once selling pressure subsided. Traders should monitor Bitcoin sentiment indicators, on-chain metrics and key support levels to pinpoint potential entry points and prepare for a likely recovery.
Bearish
In the short term, the plunge in Bitcoin sentiment and surge in retail panic selling is likely to exert downward pressure on prices, driving further volatility as traders react to negative mood. Bearish sentiment dominance can fuel additional sell-offs, potentially pushing prices toward key support levels. However, historically such extreme fear conditions have often foreshadowed rapid recoveries once selling pressure subsides, suggesting a possible medium- to long-term rebound. Traders should therefore remain cautious but monitor on-chain activity and sentiment shifts for signs of capitulation and potential entry points.