Santiment: If BTC returns to $79,000 during a bearish trend, it may diverge from retail expectations

The on-chain data platform Santiment stated that the community sentiment for Bitcoin and most altcoins has completely reversed within two weeks. On October 20, the bullish comments for BTC were about 1.8 times those of bearish comments, but as the price fell, the sentiment gradually turned bearish. After news of the theft of Binance's hot wallet emerged at the end of October, the bullish to bearish ratio once dropped to about 0.37.

After a brief warming of sentiment, as preliminary results of the U.S. midterm elections showed that the Democratic Party is likely to control both houses of Congress, bearish comments once again dominated, and the current bullish to bearish ratio has fallen to about 0.51. Santiment pointed out that many retail investors view the Republican Party as the side with friendlier cryptocurrency policies, and the election results are bringing new selling pressure.

Santiment believes that retail panic can often serve as a contrary indicator. In the days following the finalization of the midterm election results, attention should be paid to a "sell the expectation, buy the fact" type of reaction. If BTC reclaims $79,000 while the crowd remains bearish, it will be a strong signal that the price is starting to move against retail expectations.