The negative sentiment of crypto investors indicated a possible market bottom.

Sentiments on social media have become extremely negative, and the idea of "buying on the dip" is gradually fading — classic signs that precede a market reversal. Analysts pointed this out.

"Be cautious when you see a broad consensus about a specific price bottom. True bottoms are often formed when the majority expects further declines," experts warned.

The ratio of positive and negative comments about Bitcoin has reached its lowest level in the last month. As the price declines, the "dominance" of the first cryptocurrency on social media has risen to over 40%, becoming the main topic of "worrying conversations."
According to researchers' observations, the recent correction did not lead to significant liquidations, and the open interest in perpetual contracts "retained only a small fraction of the October figure." This indicates that the market has exhausted the supply of long positions with excessive leverage, hinting at a possible reversal in dynamics.

Although the drop of Bitcoin below the psychological level of $100 000 caused a wave of fear, some investors still identified the mark of $90 000 as critical.

Santiment also identified a clear divergence in wallet behavior. Large holders (10-10 000 BTC) have been steadily selling coins since the historical peak was reached in October. At the same time, small retail wallets ( up to 10 BTC) continued to accumulate during the decline.

"The true signal for the minimum is likely to be a reversal of this trend," the analysts added.

At the same time, the 30-day MVRV on the Bitcoin chart has dropped to -10% for the first time in eight months. This indicates that short-term traders are realizing significant losses. Historically, such high stress among investors has corresponded to low-risk buying zones.

Santiment noted that a significant outflow of funds from ETFs over the past week could also be a positive sign for the spot price of Bitcoin.

"Large inflows of funds often marked local price peaks, while significant outflows coincided with market lows, indicating panic among retail investors," analysts emphasized.

Recall that CryptoQuant announced the end of panic selling in the cryptocurrency market. According to their data, the losses of investors who purchased the first cryptocurrency over the last six months have approached 13%, which corresponds to a sign of capitulation.