Santiment Says Bitcoin Selloff Is Spreading Fear, May Signal Short-Term Rebound
Summary
- On-chain analytics firm Santiment said bearish sentiment is spreading across the market as Bitcoin declines.
- Santiment added that the more fear-driven selling expands, the greater the chance of a short-term rebound.
- The market is watching whether BTC can hold a key support level and how investor sentiment changes.
Forecast Trend Report by Period
Bearish sentiment is spreading quickly across the crypto market as Bitcoin (BTC) falls, according to on-chain analytics firm Santiment. The firm also said excessive fear could instead signal a short-term rebound.
In a post on X on May 18, Santiment said bearish views on social media increased after BTC fell to the $76,000 level.
Based on on-chain data, bearish commentary overtook bullish commentary for the first time since April 21, Santiment wrote.
The firm said markets generally tend to move against prevailing crowd sentiment.
As a result, the chances of a short-term rebound could rise if fear-driven selling by retail investors accelerates, it added.
The crypto market has recently become more volatile as US Treasury yields climbed, expectations for interest-rate cuts weakened and international oil prices surged.
Market participants are watching whether BTC can hold a key support level and how investor sentiment shifts.
