Despite Bitcoin's rebound, market sentiment remains bearish

Santiment analytical platform confirmed on social media the observation regarding changes in the Bitcoin market. Although the price of the most prominent cryptocurrency rebounded from $60,000 last week to the current $67,990, the prevailing sentiment on social platforms remains clearly bearish. According to Odaily, both at the level of individual post analysis and overall investor climate, bears still outnumber bulls in terms of quantity and intensity.

The Paradox Between Market Technique and Psychology

Despite many positive technical signals, the situation indicates a clear disconnect between the behavior of different market participant groups. The bearish sentiment, despite Bitcoin’s nearly 13% rebound from last week’s lows, points to deep concerns among retail investors. Current data shows the market is split with a 50:50 sentiment ratio between bearish and bullish, suggesting polarization among participants.

Institutional vs. Retail Investor Behavior

A key observation concerns the asymmetry in the behavior of major market players. While retail investors show reluctance to buy at current prices—manifested by dominant bearish sentiment in posts and discussions—key institutional participants, despite the prevailing pessimism, systematically accumulate positions with minimal market resistance.

This behavioral divergence suggests that, despite the dominance of bearish sentiment, market elites view current prices as an opportunity to strengthen their holdings. Historically, periods of heightened fear and panic in the cryptocurrency markets often precede solid price rebounds. The current situation may be another example of this pattern, where social sentiment lags behind actual market capabilities.