Bitcoin Sentiment Turns Negative Again; Price History Shows What Happened Last Time

According to Santiment data, bearish comments now outweigh positive ones for Bitcoin (BTC), Ethereum (ETH), and XRP (XRP). XRP draws roughly 1 bullish comment for every 2 bearish ones.

The negative turn has gone hand in hand with a steady decline across crypto prices. For Bitcoin, the pattern mirrors early November, when similar gloom was followed by a short-lived rally that then evaporated.

Altcoin Gloom Has Now Reached Bitcoin

Santiment builds its sentiment gauge by comparing bullish and bearish commentary on major social platforms. Once the reading moves below 1.0, bearish posts are in the majority.

Altcoins were the first to see sentiment sour. On October 2, Ethereum’s sentiment score was 0.89 and XRP’s was 0.67, while Bitcoin remained positive at 1.37.

The record Binance hack in late October accelerated the deterioration, Santiment says. By November 3, Bitcoin sentiment had slid to 0.69 and Ethereum stayed at 1.14.

The fear is spreading again in the November 11 figures. Ethereum has fallen back under the neutral mark to 0.88, XRP has dropped to 0.49, and Bitcoin, after a brief recovery toward neutral, is at 0.82.

Bitcoin’s moves after the November 3 reading show what came of that earlier fear.

The Previous Rebound Faded Within Days

On November 4, one day after the US midterm elections, Bitcoin rose above $80,800. The climb came as oil prices fell sharply once Democrats took control of Congress.

The advance did not last. On November 5, Bitcoin slid toward $75,500 while tech stocks were sold off.

By November 8, Bitcoin had touched $73,708, its lowest level since August. It fell below $73,000 by November 10 and is now trading at $73,665, according to BeInCrypto Markets.

Santiment’s own bottoming test depends on whether this run of lower lows comes to an end.

What Is Still Missing: Price Stabilization

Intense pessimism often precedes a relief rally, according to Santiment. On November 3, though, the firm added a condition to that pattern.

“Extreme fear alone does not mark the exact bottom, but fear plus price stabilization has often been a much stronger signal,” it said.

So far, only the fear half of that test has been satisfied. Bitcoin sentiment is below 1.0, but the Bitcoin price has continued lower.

The November 10 slip under $73,000 is the level to watch. Holding above it would tick the stabilization box in Santiment’s test.

In a falling market, fear can also linger. The aftermath of the Binance hack and the recent tech-stock selloff give traders reason to remain cautious.

Whether Bitcoin stays above that low will reveal if the bearish chatter is marking a floor or pointing to more downside ahead.