Bitcoin sentiment plunges to multi-month lows as price rebounds from $74.5K

Bitcoin sentiment has slid into deep bearish territory, mirroring conditions last seen during November’s sell-off, even as prices attempt to stabilize after a sharp late-January drawdown.

Social data shows negative commentary overtaking positive posts for the first time in nearly two months. The trend reflects growing pessimism among retail traders following Bitcoin’s steep decline. 

Also, the shift comes after BTC fell roughly 16% since 28 January, briefly touching a low near $74,500 before rebounding.

Price action over the past 48 hours suggests tentative stabilization. Bitcoin has since recovered to around $78,700, marking a daily gain of just over 2%. However, it remains well below the psychological $80,000 level that previously acted as short-term support.

Oversold conditions emerge on Bitcoin daily chart

Technical indicators underline the severity of the recent sell-off. Bitcoin’s 14-day RSI has dropped to around 29, placing it firmly in oversold territory and close to levels that historically coincide with short-term relief rallies.

Trading volume also expanded during the drop toward $74.5K, pointing to a burst of capitulation-style selling rather than a slow grind lower. 

Source: TradingView

However, follow-through buying remains limited, with price struggling to reclaim broken support zones between $80,000 and $85,000.

From a structural perspective, Bitcoin continues to print lower highs and lower lows on the daily timeframe. 

While the bounce from $74.5K relieves immediate downside pressure, it has yet to invalidate the broader corrective trend that began after January’s highs.

Fear dominates sentiment as retail steps back

The surge in bearish social commentary reflects growing caution among retail participants, many of whom appear to have reduced exposure during the sell-off. 

Similar sentiment extremes were recorded during the November downturn. These periods were followed by short-lived rebounds rather than immediate trend reversals.

Source: Santiment

This divergence between improving price and deteriorating sentiment highlights a familiar market dynamic: emotional capitulation often occurs near local lows. At the same time, conviction returns only after price structure improves.

For now, Bitcoin’s rebound looks corrective rather than decisive. Sustained recovery would likely require reclaiming the $80,000–$85,000 zone. At the same time, failure to hold above $74,500 would reopen downside risk toward deeper support levels.

Final Thoughts

• Bitcoin sentiment has reached levels consistent with capitulation, but price structure has yet to confirm a broader trend reversal.
• The rebound from $74.5K eases short-term pressure, though reclaiming key resistance remains critical for recovery.