Retail Turns Bearish as BTC Drops Below $113K: Buy Signal?

• Bitcoin drops below $113K, retail turns ultra bearish
• Sentiment is most negative since June 22
• Historically, extreme fear often signals market bottoms

Bitcoin Dips, Retail Panics

Bitcoin ($BTC) has fallen below $113,000, and with it, retail traders have turned sharply bearish. Current sentiment metrics reveal the most negative outlook since June 22, as fear and doubt grip the market.

Retail sentiment is a valuable psychological gauge. While many investors are quick to sell during dips, history shows that extreme pessimism can be a contrarian indicator. In previous cycles, similar sentiment crashes often preceded strong rebounds.

Crowd Fear = Market Opportunity?

When the majority becomes overly bearish, smart money often starts accumulating. The logic is simple: markets tend to move opposite to crowd emotion. Panic-driven selling creates undervalued conditions—ideal for larger players or experienced traders to step in.

This pattern has played out in numerous previous corrections. Once retail gives up, institutional and long-term investors start buying the fear, which eventually leads to price recovery. If the current sentiment holds, Bitcoin may be nearing a short-term bottom.

What’s Next for Bitcoin?

While $113K is a significant psychological level, BTC still remains within a broader bullish structure over the long term. A short-term correction isn’t unusual in parabolic markets, and such dips are often seen as healthy reaccumulation phases.

However, traders should stay cautious and watch for confirmation signals—such as volume spikes, RSI reversals, or reclaiming key support levels—before making aggressive entries.

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