Why Fear Could Mean Opportunity

The new week opened bearishly for Bitcoin (BTC), which briefly fell under $112,000 in Monday’s action. It has undergone a modest recovery since then and is currently trading near $113,500.

Interestingly, a historic pattern has surfaced that often ignites sudden price surges.

Social Sentiment Turns Dark

There has been a striking rise in bearish Bitcoin predictions between $70K and $100K, which has outpaced bullish $130K-$160K targets.

Previous instances have shown that when lower price calls dominate social mentions, it reflects fear and impatience among retail traders, and conditions were often found to precede upward price moves.

On the other hand, a surge in lofty targets has typically indicated market euphoria and upcoming corrections. The current spike in sub-$100K mentions highlights growing FUD, according to the latest update shared by Santiment, which could potentially mean that many small traders are capitulating.

The crypto analytic platform stated that this environment of skepticism may create a buying opportunity for patient Bitcoin investors who are eagerly anticipating a breakout as sentiment leans heavily toward downside expectations.

Next Decisive Move

Bitcoin’s market is entering what many analysts call the “calm before the storm.” Implied volatility, for one, has dropped to its lowest level since 2023, the same setup that led to a massive 325% rally from $29K to $124K.

CryptoQuant data shows that exchange reserves are continuing to fall toward multi-year lows, which means that fewer coins are available for sudden selling pressure, thereby setting the stage for a potential supply squeeze.

Meanwhile, the MVRV ratio hovers near a neutral 2.1, which indicates that holders are neither desperate to exit nor eager to cash in profits. Such a trend keeps selling incentives muted. Funding rates across derivatives markets remain steady and positive, and traders are not piling into aggressive long or short bets.

This balanced positioning has rarely persisted for long in BTC’s history. Whether this quiet phase leads to another explosive rally or an unexpected breakdown, on-chain signals agree that the crypto asset could soon give way to its next decisive, and potentially dramatic, move.