Retail Fear Signals Buying Opportunity After Crypto Crash, Say Analysts

Retail investors remain quaking in fear and doubt following the record crypto liquidation event over the weekend. 

Retail crowd fear, uncertainty, and doubt (FUD) continue to be a strong buying signal for Bitcoin and altcoins, reported Santiment on Tuesday. Analysts shared a chart illustrating the ratio of all positive to negative comments across social media over the past seven months.

“In every one of these cases, FUD took over due to world events that were overreacted to from a market perspective,” they stated before adding that the market usually moves opposite to retail expectations.

“Retail’s emotions often dictate that Bitcoin’s and altcoins’ prices are about to do the opposite.”

📈 The below chart represents the ratio of all positive vs. negative comments across social media over the past 7 months. We have marked arrows next to the 4 most negative days since March, with the latest one occurring Friday after the US temporarily implemented 100% tariffs on… pic.twitter.com/KUhzN0mGjy

— Santiment (@santimentfeed) October 13, 2025

Don’t Fear a Flash Crash

Fear still seems to be controlling sentiment despite the market recovery. The crypto Fear & Greed Index remains at 38 (fear) after falling to 24 over the weekend, its lowest level since the April market crash when Trump first announced tariffs.

In a separate post, Santiment reported that altcoin traders who bought the dip following the weekend rout “were handsomely rewarded,” noting large gains for Sui, Bittensor, and Ethena.

Crypto venture capitalist “Dan Gambardello” is one of the diamond hands who has remained bullish. He shared a chart of the total market capitalization on Tuesday, showing how it has been steadily increasing despite these flushouts caused by degen derivatives gamblers.

“Stay focused, have a plan, and ignore the negative anonymous comments on social media. A massive bull run is charging!”

Take a look at the total crypto market cap monthly chart!

If you’re ready for what’s next, congratulations!

Stay focused, have a plan, and ignore the negative anonymous comments on social media.

A massive bull run is charging! pic.twitter.com/WFvp6YEv3j

— Dan Gambardello (@cryptorecruitr) October 13, 2025

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Real Vision founder and CEO Raoul Pal was equally bullish, brushing off the FUD and stating that, regardless of what sparked it, Friday was a flash crash.

“Flash crashes usually recover in V-shapes back to their prior price/range and usually go on to make new highs shortly after. In this case, we entirely wiped out all accumulated leverage, too. Higher.”

Meanwhile, ‘Degen Ape Trader’ took a look at gold charts, noting that Bitcoin remains a laggard in choppy price action. “We had the same situation 10 months ago, and at the end of the tunnel, TradFi started heavily rotating money from gold to Bitcoin,” he said before predicting BTC could hit $170,000 by December.

Bitcoin, Altcoins Fall Back

Despite the wave of post-crash bullposting this week, Bitcoin was rejected at $116,000 on Monday and fell heavily over the past 12 hours to $112,000 during Tuesday morning trading in Asia. However, it has been trading in this range since it broke above $108,000 three months ago in mid-July.

“Ultimately, after this massive crash, the maximum pain scenario is up,” said crypto podcaster Michaël van de Poppe before adding, “The markets were grinding up already, and I think that these will resume.

“That’s why I think that altcoins are the play. ETH is the play. Risk-on is the play.”