After the historic liquidation event on October 11, market sentiment has yet to recover. In fact, it has grown even more pessimistic, as shown by key sentiment indicators. Still, analysts remain far from bearish.

Many experienced investors believe that widespread fear often creates opportunities for those who act swiftly. But is this time any different?

Fear and Greed Index Falls to Record Low

On November 13, the Fear and Greed Index plummeted to 15 points, its lowest level since February of this year.

This index measures market sentiment based on multiple factors, including price volatility, trading volume, social media trends, Bitcoin dominance, and other indicators.

Crypto Fear & Greed Index. Source: Alternative

A score of 15 represents a state of “Extreme Fear”, reflecting widespread pessimism across the crypto community.

The last time the index dropped below 20 was February 27, followed by a 25% decline in Bitcoin’s price to $75,000 one month later.

Because of this, the new dip to 15 points has raised concerns that a similar correction could be ahead.

A recent Santiment report analyzed community sentiment for the top three cryptocurrencies — Bitcoin, Ethereum, and XRP ($2.50) — and found that negative discussions are rising sharply.

Bitcoin, Ethereum, XRP Positive vs. Negative Sentiment Ratios. Source: Santiment.

The assessment uses the Positive/Negative Sentiment ratio. When the ratio drops significantly, it indicates that negative discussions dominate the market narrative. All three assets are now showing sentiment levels well below normal.

However, Santiment’s report views this as a potential bullish signal:

“When the crowd turns negative on assets, especially the top market caps in crypto, it is a signal that we are reaching the point of capitulation. Once retail sells off, key stakeholders scoop up the dropped coins and pump prices. It’s not a matter of ‘if’, but ‘when’ this will next happen,” Santiment noted.

Several well-known market analysts share this view, arguing that panic selling is not the right response — patience is.

“Bitcoin market sentiment is as poor as it was during the February–April drawdown. A local bottom is forming as weak hands are being shaken out. Patience is a virtue,” analyst Joe Consorti said.

Meanwhile, Kyle Reidhead from Milk Road offered a more cautious outlook, suggesting that this negative sentiment could push Bitcoin down to the $90,000 range before a strong rebound takes place.

History shows that the “Buy the Fear, Sell the Greed” strategy has worked well for Bitcoin over the years. However, most retail investors still lose money — either because they use excessive leverage or because they lack the patience to endure prolonged periods of extreme fear.

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