Bitcoin Sentiment Turns Negative, Market Reset Looms

Bitcoin's market sentiment has turned negative for the first time in months, signaling a potential shift in investor sentiment towards the world's leading cryptocurrency. This change in perception, as reflected in both Twitter and mainstream media, suggests a broader market reset, although it does not guarantee an immediate price drop.

Market sentiment plays a crucial role in shaping Bitcoin's price movements, and platforms like Twitter have become key indicators of public perception. The sentiment expressed on social media can act as a powerful forecasting tool, influencing investor behavior. Historically, Bitcoin has seen significant price fluctuations following shifts in social media sentiment, with surges in positive tweets preceding price increases and downturns in sentiment preceding market declines.

Bitcoin's sentiment has flipped negative for the first time since December 2024, marking a stark contrast to the euphoria that fueled its recent highs. Historically, such downturns in sentiment have acted as inflection points, either preceding extended consolidation or setting the stage for a sharp rebound. The critical takeaway is not just that sentiment has turned negative, but that the market's emotional cycle is resetting. This phase often sees weak hands exiting, while institutional and deep-pocketed investors quietly accumulate. Fear-driven selling has historically created asymmetric opportunities for contrarian investors.

Rather than treating this as a definitive bottom signal, traders should use this moment to reassess their positioning. Tracking derivatives and on-chain data will be key to determining whether Bitcoin is gearing up for a recovery or bracing for a deeper shakeout. Bitcoin's daily chart underlined a consolidation phase, with the price hovering near $97,600 on the charts. The 50-day SMA at $98,762 seemed to be acting as immediate resistance, while the 200-day SMA at $79,836 hinted at long-term support.

The RSI at 46.89 alluded to neutral momentum, reflecting indecision in the market. Meanwhile, the MACD was negative, with weak bullish divergence hinting at a possible trend shift. If Bitcoin reclaims $100k, it could trigger renewed bullish sentiment. However, failure to break key resistance levels may lead to further consolidation or a retest of lower support zones. There has also been a surge in daily active addresses and whale transactions, a sign of growing institutional and retail participation. Historically, such spikes