Bitcoin news

Retail traders have turned to a state of extreme pessimism after Bitcoin failed to recover from its drop below $113,000, marking the worst decline in social sentiment since June, according to Santiment analysis. This drop represents the lowest level for Bitcoin since August 3.

Sentiments of optimism on social media have reached "extremely pessimistic" levels not seen since the outbreak of conflict in the Middle East in June. Bitcoin has dropped 8.5% from its all-time high of over $124,000, pushing the total market value of cryptocurrencies below $4 trillion for the first time in two weeks.

The Fear and Greed Index for Bitcoin has dropped to 45, approaching the "fear" zone at its lowest level since late June. Santiment analysts believe that panic selling is a positive signal for potential buyers when prices drop amid "widespread chaos."

Historical patterns indicate similar corrections in previous bull cycles. In 2017, Bitcoin corrected by 36% before rising to new peaks three months later, while a 23% decline preceded its all-time high in September 2021 that year. If the patterns repeat, Bitcoin could reach $90,000 before recovering.