Bitcoin sentiment has flipped sharply negative after a 16% late‑January sell‑off, even as prices attempt to find a footing above roughly $74,500. What happened - BTC slid about 16% from Jan. 28 and briefly touched a low near $74,500 before bouncing. Over the past 48 hours the market has shown tentative stabilization, with Bitcoin trading near $78,700 — a daily gain of just over 2% — but still short of the psychologically important $80,000 level. - Social sentiment has turned decisively bearish: negative commentary has outpaced positive posts for the first time in nearly two months, a shift that mirrors retail caution seen during November’s downturn. (Source: Santiment) Technical picture - Momentum and volume underline the severity of the decline. Bitcoin’s 14‑day RSI has plunged to around 29, putting it squarely in oversold territory — a level that has often coincided with short, relief rallies. - Trading volume spiked on the fall toward $74.5K, suggesting capitulation‑style selling rather than a slow, orderly pullback (Source: TradingView). - On the daily chart Bitcoin is still printing lower highs and lower lows. The bounce from $74.5K eases immediate downside pressure but does not yet invalidate the broader corrective trend that began after January highs. What to watch next - For the rally to feel convincing, BTC needs to reclaim the $80,000–$85,000 zone and re-establish bullish structure. Without sustained follow‑through buying, the current bounce looks corrective rather than decisive. - If price fails to hold above the $74,500 area, downside risk would reopen toward deeper support levels. Context and takeaways - The swing from optimism to pessimism among retail traders is a classic market dynamic: emotional capitulation often appears close to local lows, while conviction typically only returns after price structure improves. Previous sentiment extremes, like those in November, led to short lived rebounds rather than instant trend reversals. Disclaimer AMBCrypto’s content is informational only and not investment advice. Cryptocurrency trading carries high risk; readers should do their own research before making any decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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