Retail investor sentiment in Bitcoin has fallen to its lowest point since the market crash on October 20. The analytics firm Santiment reported this October 30 that panic has taken hold of small holders. This occurs as the price of BTC struggles to maintain key support levels.
According to Santiment’s data, the weighted sentiment indicator for Bitcoin (BTC) shows an extreme level of fear. This panic had not been registered with such intensity since last month’s collapse. On the other hand, the analytics platform highlights a key divergence. “Whale” addresses, those holding 100 to 10,000 BTC, have been actively accumulating. Thus, the big players seem to be absorbing the supply that retailers are selling at a loss.
Historically, extreme sentiment in the crypto market is considered a contrarian indicator. When the “crowd” (retail investors) shows maximum fear, it often coincides with market bottoms. This pattern suggests that retail capitulation might be near. However, the macroeconomic environment remains tense, as recent volatility has shaken the confidence of new market participants.
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The disconnect between retail investor sentiment in Bitcoin and the action of whales presents a complex scenario. If whales continue to buy the dip, they could establish a solid price floor. For investors, this metric is crucial. Watching institutional accumulation versus retail panic can offer clues about the medium-term direction. The price of Bitcoin could see a rebound if the panic subsides.
The current situation reflects a clear battle in Bitcoin’s economy. Santiment’s data confirms that fear dominates the retail investor. Nonetheless, smart money seems to be taking advantage of the opportunity. The next few days will be decisive. It will be monitored whether retail investor sentiment in Bitcoin recovers or if whales can sustain the price on their own.
