Bitcoin drops to $84,800 triggering panic sentiment; historical data hints at a reverse rebound signal

As Bitcoin prices retreat to around $84,800, market sentiment in the crypto space has quickly turned pessimistic. On social media platforms, panic-driven comments from retail investors have noticeably increased, with negative opinions far surpassing bullish sentiments in discussion popularity, drawing widespread market attention.

On-chain data analysis firm Santiment points out that the current social sentiment structure shows a clear imbalance. A large number of retail investors are expressing concerns, bearish views, and even panic-driven expectations after the price decline, resulting in an extreme emotional state. According to their long-term tracked historical data, this phenomenon is often not a sign of trend continuation but may instead indicate the potential for a short-term rebound.

Santiment states that when market sentiment is highly pessimistic, it often means that a significant amount of selling pressure has already been released in advance, with sellers gradually losing strength, and patient capital beginning to look for low-entry opportunities. This “sentiment reversal indicator” has appeared in multiple previous Bitcoin corrections.

Although in the short term, Bitcoin prices may still be influenced by macroeconomic conditions, policy expectations, and capital flows, current sentiment indicators show that the market is approaching a low sentiment zone. For long-term investors, extreme pessimism often provides a window to reassess risks and opportunities.

Overall, whether Bitcoin will experience a phased rebound amid the significant rise in social media panic sentiment will likely depend on whether funds re-enter at low levels and the overall market confidence recovers.