Back to the Blog Main Page
20/08/25
18
Bitcoin Sentiment Turns Bearish as Price Falls Below $113K
Retail investors have shifted to a predominantly bearish outlook following Bitcoin’s recent failure to recover from a dip below $113,000, reaching its lowest point in 17 days. This sudden change in sentiment reflects growing unease among smaller traders, with many opting to sell or reduce their positions amid declining prices.
Analysts at a blockchain analytics firm observed that social media platforms exhibit the most negative sentiment since June, a period marked by heightened fears related to geopolitical tensions in the Middle East. Despite the negativity, experts suggest that this environment of widespread fear and capitulation can present lucrative opportunities for contrarian traders prepared to buy during downturns.
The current correction has pushed Bitcoin to approximately $112,656 on Coinbase — its lowest level since early August. This decline represents an 8.5% retracement from last week’s peak of over $124,000. The broader cryptocurrency market has also experienced a contraction, with total market capitalization falling below $4 trillion for the first time in two weeks. The Bitcoin Fear & Greed Index has slipped into ‘Fear’, scoring just 44 out of 100, signaling a cautious and risk-averse market.
Market corrections within a bull cycle are considered a normal and healthy aspect of the overall trend. Historical patterns from previous bull markets — such as 2017 and 2021 — demonstrate that significant retracements often precede rally resolutions. In 2017, Bitcoin experienced a 36% correction in September before rallying to new highs, while in 2021, a 23% dip preceded its all-time peak later that year. Should history repeat, a similar correction depth in 2025 could see Bitcoin declining to approximately $90,000 next month before resuming its upward trajectory toward new record highs.
Such cyclical movements reinforce the importance of patience and strategic positioning within volatile phases, as markets often test investor resolve before continuation of the larger uptrend.
Promotions
