Retail Traders Turn Bearish as Bitcoin Drops to 17-Day Low

Bitcoin slipped under $113,000, hitting its lowest point in 17 days and triggering panic among retail traders. According to Santiment, social sentiment has flipped to “ultra bearish,” the sharpest downturn since June 22, when Middle East tensions sparked heavy selling.

Interestingly, Santiment interprets this fear as a potential bullish signal, noting that retail often sells at the bottom while long-term holders stay steady. “Markets usually move against the crowd’s expectations,” the firm explained, hinting that a rebound could be near.

On Tuesday, BTC fell to $112,656 on Coinbase — its lowest since August 3 — and is now down 8.5% from last week’s record high of $124,000. The global crypto market cap also slipped below $4 trillion, while the Fear & Greed Index dropped to 44 (“Fear”), its weakest reading since late June.

History suggests that corrections are normal during bull runs: in 2017, Bitcoin dipped 36% before a new ATH, while in 2021, a 23% pullback came before another rally. If the pattern repeats, BTC could retrace toward $90,000 in September before pushing to fresh highs.