Cryptocurrency markets are sending conflicting signals as prices recover while social sentiment plummets. Data from Santiment reveals bearish posts dominate social media despite Bitcoin rebounding from a drop towards $60,000. The broader market has entered “Extreme Fear,” with key indicators suggesting the short-term recovery faces significant hurdles.
The cryptocurrency market is showing mixed signals as prices recover while social media sentiment remains deeply negative. Santiment data indicates bearish posts are significantly more prevalent than positive ones, suggesting widespread fear persists among retail investors.
This pattern of crowd sentiment often moves opposite to price action. Extreme optimism typically appears near market tops, while intense fear tends to form close to bottoms.
In February 2026, a sharp shift in sentiment followed Bitcoin’s drop from near $100,000 to the $60,000 range. Historically, such periods of heavy pessimism often mark turning points as selling pressure from weak hands eases.
The Crypto Fear and Greed Index fell to 9, marking “Extreme Fear” levels not seen since 2018. Meanwhile, the average RSI across the crypto market sat near 39.79, suggesting many assets are oversold.
Bitcoin itself has dropped more than 26% in the past month, now trading around $66,558. Indicators like RSI and MACD still show bearish signals, suggesting the downward trend may not be over.
For a sustained recovery to begin, the market likely needs ETF selling to slow down. More buyers must return to the spot market before stability can be found.
