Bitcoin Sentiment Hits Lowest Since $83K — Analysts Eye a Possible Turning Point

Fear Returns as Bitcoin Dips Below $109K

Bitcoin’s latest dip has rattled investor confidence, with the Crypto Fear & Greed Index falling to 28/100 on Friday — its lowest reading since April 11, 2025. The move comes as BTC/USD slipped under $109,000, triggering fresh liquidations and sparking debate over whether the market has reached a turning point.

The index, a widely followed sentiment gauge, dropped 16 points in a single day, showing how quickly emotions shifted as Bitcoin approaches new monthly lows.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

Sentiment Divergence: Fear Is High, Price Still Elevated

Interestingly, the index now reflects “more fear at a higher price.”

• Back in April, when the index was last this low, Bitcoin was trading near $83,000, shortly after recovering from $75,000 lows.

• Today, Bitcoin remains $25,000 higher, suggesting a divergence between investor sentiment and actual price action.

Crypto analyst Michael Pizzino highlighted this contrast, noting that fear-driven markets often create setups for reversals:

“Could this be the turning point Bitcoin and crypto have been waiting for? The analysis looks good, but it has not been confirmed.”

BTC/USD one-day chart. Source: TradingView

Social Media Turns Bearish — A Contrarian Signal?

Market research firm Santiment flagged another key trend: retail traders on social media are overwhelmingly bearish.

Historically, extreme pessimism has often preceded rebounds:

• Bearish crowd sentiment → higher probability of a price rebound.

• Overly bullish chatter → often a precursor to corrections.

Santiment noted:

“We’re seeing a high amount of impatience and bearishness emerging from the retail crowd.”

At the same time, large-volume traders appear to be quietly increasing exposure — a signal that smart money may be positioning for a bounce.

Related: Bitcoin Slips to $111K as PCE Data Looms: What Traders Must Prepare For

Macro and Historical Context

The Fear & Greed Index has been volatile throughout 2025. In February, it crashed to 10/100 due to macroeconomic fears linked to U.S. trade tariffs.

Seasonality also plays a role: September has historically been a weak month for Bitcoin, but October — nicknamed “Uptober” — has often delivered strong rallies.

Key Takeaway

• The Fear & Greed Index at 28/100 reflects the most bearish sentiment since April, even though BTC trades significantly higher than back then.

• Retail traders are fearful, while whales are accumulating.

• Analysts suggest this setup could mark a turning point — but confirmation is still pending.

For long-term investors, this divergence between sentiment and price may represent a potential buying opportunity, especially if BTC holds key support around $105,000–$103,700.

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