Ultra bearish sentiment on Bitcoin: A buying signal for the bold?
Wed Aug 20 2025 ▪ 5 min read ▪ by Eddy S.
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Bitcoin (BTC)
Bitcoin has recently fallen below $113,000, causing a shockwave in the markets. This drop of more than 8% from its peak of $124,000 has triggered a wave of pessimism among individual investors. But behind this apparent panic, some analysts glimpse a contrary signal that could herald a trend change.
In brief
Bitcoin drops to $113,000, triggering panic among individual investors despite solid fundamentals.
Institutions like Strategy are massively buying Bitcoin, suggesting a contrary strategy against the ultra bearish sentiment of retail investors.
Technical indicators and the emotional context suggest a possible bear trap for Bitcoin, signaling a rebound rather than a lasting bear market.
Sharp correction of Bitcoin… but not unprecedented
After falling below $115,000, Bitcoin dropped to $112,000 on August 19, 2025, marking one of its strongest corrections in several months. Social media reacted violently: cryptocurrency forums were flooded with alarmist messages, and small investors began to liquidate their positions in a climate of widespread fear.
According to data from Santiment, individual investor sentiment has turned "ultra bearish," reaching its most negative level since June. This type of extreme pessimism is often interpreted as an indicator of a possible trend change, especially when the fundamentals remain solid.
