Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO: ETH) And XRP (CRYPTO:XRP) are reeling from double-digit crash percentages, with crypto sentiment plunged into extreme fear.
Is a short-term relief rally on the table?
Sentiment data shows that trader sentiment turned sharply bearish on Bitcoin and Ethereum following the sell-off, with Bitcoin seeing extremely bearish readings and Ethereum turning decidedly negative.
XRP remains the most bullish among major tokens.
Historically, periods of widespread fear and disbelief among retailers have often preceded short-term relief rallies, particularly when pessimism becomes widespread in the broader crypto market.
VanEck Head of Digital Asset Research Matthew Sigel said weakening sentiment has already created attractive long opportunities.
He highlighted the BTC/gold ratio as a key metric to watch, noting that it is testing a critical multi-year support level.
Bear Market Experts Reappear
CryptoCon noted that calls for a new cycle bottom are resurfacing, like when Bitcoin was trading near $80,000, but said this time the narrative seemed more compelling.
The weekly RSI and other momentum indicators are already near all-time cycle lows, increasing the chances of a reflexive bounce.
However, long-term holders remain largely inactive, suggesting that true capitulation has yet to occur.
CryptoCon added that the sudden rise of “bear market experts” is telling, noting that they were largely absent near market highs.
For now, the preferred strategy remains caution.
Expecting genuine apathy towards crypto, rather than enthusiastic buying from the bottom, may offer a clearer signal of a lasting turning point.
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