Indicators and Google searches indicate that general Bitcoin sentiment is very pessimistic.
Bitcoin’s sentiment trend is still negative
As is shown by a tweet from Jameson Loop, a big Bitcoin supporter and co-founder of Casa, most Google suggestions redirect to negative searches:
Bitcoin is. pic.twitter.com/dJoXCPz7ko
— Jameson Lopp (@lopp) September 18, 2022
The first is “Bitcoin is dead“. As of 18 June, this search term had reached an ATH of 100/100, according to Google Trends.
Not surprisingly, it perfectly coincided with the end of the first major bearish phase, when BTC had retested $19,000 support for the first time since December 2020.
In fact, there is an indicator on the 99bitcoins portal that reports the number of Bitcoin deaths over the time period in question.
A “Bitcoin Obituary” is defined as any content that explicitly expresses the end of Bitcoin, describing it, for example, as useless or worthless.
To date, Bitcoin has died 461 times. The last one was on 3 July 2022 and was recorded by the following tweet:
There will come a day when you wish you sold #Bitcoin for $20,000!
Take a look at the historic chart to see how far of a fall is possible, if you are interested in risks associated with an unraveling Ponzi scheme.
— Peter ⚒ Spina | Greek mode | Gold & Silver Maxim. (@goldseek) July 3, 2022
The phrase that made this statement qualify as an obituary was:
“Bitcoin is an Unraveling Ponzi Scheme”.
It is no coincidence that this research is back in fashion, just now that the value of BTC has broken a new support, pushing below $18,500.
This could be technical confirmation of a bearish pattern, which could drag Bitcoin toward $10,000, a level hailed by many analysts.
Another important factor that adequately summarizes Bitcoin’s market sentiment is the well-known Fear & Greed Index.
Currently, it stands at 21, which indicates Extreme Fear on the part of investors.
This situation occurs precisely in persistent bearish phases, or following a series of negative events.
The relationship between sentiment and asset price
Unfortunately, people’s views are closely influenced by asset prices. If these fall, then it results almost instantly in a loss of investor confidence.
In this case, however, in the same way that one assesses the future potential of a company, one should analyze the underlying technology and the capabilities of the ecosystem to meet a given need in the market.
This will provide a more or less adequate estimate of the intrinsic value of the asset under consideration, lending some additional level of rationality to investment decisions.
Most people do not do this and allow themselves to be guided by the strong emotions of the moment, such as the famous FOMO (Fear Of Missing Out), fear, greed, or simply uncontrolled general hype.
This explains why almost all retail investors buy when the price is high, and sell when the price is low.
