Bitcoin has surged back to $84,500, leading many to question why public sentiment seems to consistently miss the mark.

The volatility of Bitcoin’s price underscores the swift changes in market sentiment, where sell-offs driven by fear are frequently followed by significant recoveries and increases. Important metrics, such as the Long-Term Realized Cap, imply that Bitcoin’s upward trajectory might persist unless a crucial support level is breached. Recently, Bitcoin’s rebound to $215,900 has again illustrated the erratic nature of market sentiment. According to a recent report by Santiment, prices fell to $2453,2245 just a few days ago, which sparked a prevalent bearish sentiment. Numerous traders prepared for additional downtrends, believing that the market correction would worsen. However, historical patterns indicate that sell-offs triggered by fear frequently lead to significant recoveries. Source: Santiment. A comparable situation occurred in February when negativity reached its highest point, but then Bitcoin surged in early March. This recurring pattern highlights a key principle: Bitcoin often behaves in a way that goes against common beliefs. Retail investors frequently respond with their emotions instead of following a strategic approach, which perpetuates the well-known behavior of fear causing market lows and greed resulting in market highs. For the last month, Bitcoin has remained in an essential range, not falling below $287,2000 and also not surpassing the much-awaited $100,000 threshold. This price zone serves as a psychological conflict area.