Bitcoin Sentiment Hits Multi-Year Low as Analysts Warn of Fading Demand
Bitcoin’s sharp downturn last week has triggered one of the steepest drops in social sentiment in recent years, according to data shared by on-chain analyst Ali Martinez.
Following Friday’s flash crash, the weighted sentiment around BTC turned deeply negative, reflecting shaken confidence among retail investors and traders after a sudden wave of liquidations swept through the market.
Data from Santiment shows that Bitcoin’s social volume has also declined significantly since early October, marking a clear shift in market psychology. The crash coincided with a massive selloff seen on Binance futures, where liquidation heatmaps from Coinglass reveal hundreds of millions in leveraged long positions were wiped out as Bitcoin briefly plunged below $110,000 before stabilizing near $111,000.
Market Liquidity and “Max Pain” Levels
Analyst Crypto Rover noted that the “max pain” zone for Bitcoin may now be positioned higher, suggesting that a move upward could inflict the most losses on remaining short positions. His heatmap analysis indicates concentrated liquidity between $125,000 and $130,000 – levels where potential short squeezes could accelerate a recovery if demand returns.
Apparent Demand Mirrors Historical Cycles
Further analysis by CryptoQuant highlights that Bitcoin’s apparent demand has entered a “fading phase,” similar to patterns observed after previous cycle peaks.
Historical data shows that every bull market top since 2013 was followed by a significant decline in apparent demand, often preceding prolonged consolidation periods. Rover emphasized that only a major resurgence in buying pressure could disrupt this recurring four-year rhythm.
Technical Outlook: Momentum Weakens but Not Broken
From a technical perspective, Bitcoin’s daily chart on TradingView shows a loss of upward momentum, with the RSI hovering near 41 and MACD trending negatively. Despite the recent pullback, the broader structure remains intact, as long as BTC holds above the $105,000-$108,000 range, which serves as key support from June and July consolidation zones.
If bulls manage to regain control above $115,000, analysts believe a relief rally toward $120,000 remains possible – especially if short liquidations accelerate. However, sustained recovery will depend on whether market sentiment improves and on-chain demand stabilizes in the coming weeks.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
