Is it the least risky period for Bitcoin investment?

Bitcoin (BTC) has fallen below the 100 thousand dollars level again, and this has been observed to significantly increase the fear sentiment in the markets. This situation indicates a period where risk has decreased in the short term. Particularly this month, with Bitcoin dropping below the 100 thousand dollars level for the second time, misleading information (FUD) has resurfaced in discussions on social media.

An analysis firm named Santiment emphasizes that the latest charts measuring investor sentiment provide important signals regarding the risk-return balance in the market. According to experts, this pullback process, which creates panic especially among retail investors, is historically very close to an opportunity zone. The recent drop in Bitcoin has led to a rapid spread of pessimism on social media platforms, while Santiment's data shows that there are three main areas in the emotional cycle: extreme optimism, neutrality, and extreme fear.

Extreme optimism and FOMO (fear of missing out) generally appear just before market declines, while price movements during neutral periods are more influenced by whales, news flow, and macroeconomic developments. On the other hand, periods of extreme fear and FUD historically coincide with times when the likelihood of Bitcoin prices rising increases.

Should we seize the buying opportunity for Bitcoin right now? Santiment indicates that the current sentiment is approaching the fear zone, and this situation has frequently provided less risky buying opportunities in the past. As panic feelings increase, the priority for whale wallets to show recovery rather than create selling pressure presents a positive outlook for the medium term. While the drop in Bitcoin prices below the 100 thousand dollars level indicates a trend disruption for many retail investors, the data shows that whales are behaving calmly and strategically.

In Santiment's latest analysis, it has been observed that whales have not aggressively sold during this downturn; on the contrary, they have maintained their positions and occasionally increased them. This indicates that although volatility may continue in the short term, the overall trend has not completely deteriorated. Investors are advised to carefully monitor potential buying opportunities in Bitcoin prices and market sentiment.