Bitcoin Retail Sentiment Collapses; Is This the Contrarian Bottom for BTC?

• Retail sentiment has reached panic levels not seen since June after Bitcoin’s dip below $113K.
• Excessive leverage is fueling short-term risks, with OI above $40B and funding rates skewed toward longs.
• Institutional demand remains strong, with ETFs and corporate treasuries holding over 1.3M BTC.

Bitcoin’s latest stumble to the $113K range has triggered a dramatic shift in sentiment among retail traders, with social media showing the most bearish outlook since late June.

According to on-chain analytics firm Santiment, many small investors have effectively thrown in the towel after repeated failed rallies, flooding the market with bearish sentiment.

Retail traders have done a complete 180 after Bitcoin has failed to rally and dipped below $113K. The past 24 hours have marked the most bearish sentiment seen on social media since the June 22nd fears of war caused a cascade of panic sells.

Historically, this negative… pic.twitter.com/UYKOpWoOkn

— Santiment (@santimentfeed) August 20, 2025

Fear Can Be Just As Bullish

But if you’re a contrarian trader, this might be the signal you’ve been waiting for. Historically, these moments of mass retail capitu…

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