After enduring five consecutive months of losses, Bitcoin appears to be primed for a rebound, with some traders anticipating that the bears will soon encounter their first significant challenge this cycle.
Oversold Conditions Catch the Market’s Attention
Bitcoin made a resurgence above $70,000 on Tuesday, sparking discussions on social media that market intelligence firm Santiment describes as entering “FOMO territory.”
Social media conversations took a nosedive on Monday but quickly rebounded as prices began to rise.
The rapid shift is characteristic of crypto markets, which operate 24/7 and are not dependent on any single government or financial system, often leading to swift movements during times of uncertainty.
Image: Tanganica.com
The price recovery was partly triggered by remarks from US President Donald Trump indicating that tensions in the Middle East, particularly with Iran, may be easing.
Following Trump’s comments, oil prices declined, providing a positive catalyst for crypto traders.
Trump’s statements were quickly followed by a post on Truth Social warning of increased military pressure on Iran in the event of oil supply disruption.
🤑 Bitcoin sentiment has jumped back into FOMO territory after its market value exceeded $70K Tuesday. Across X, Reddit, Telegram, and other crypto-related discussions, the crowd is encouraged by Trump’s comments that the war may soon end, and oil prices reversing course. pic.twitter.com/S21cXOUM0F
— Santiment (@santimentfeed) March 10, 2026
The conflicting signals did not halt the Bitcoin rally, but they introduced an element of uncertainty that traders could not overlook.
Strategy’s Significant Purchases Provide Momentum
Ryan McMillin, chief investment officer at Australian crypto investment manager Merkle Tree Capital, noted that the improved sentiment was not solely driven by geopolitical factors.
He highlighted ongoing institutional buying, particularly by Strategy, which acquired nearly 18,000 Bitcoin last week and made a subsequent purchase earlier this week.
The fact that Bitcoin held above its February lows was also significant. Data indicates that the asset experienced a steady decline from its all-time high of $126,000 in October, enduring five months of consecutive losses that left it in a technically oversold state.
According to McMillin, such a prolonged downward trend can set the stage for a relief rally even without a significant catalyst.
He stated, “Short positions are at risk. Liquidity on the short side may be squeezed towards $80,000 before a definitive decision point is reached.”
McMillin also highlighted factors such as diminishing inflation, the impending appointment of a new Federal Reserve chair, and the Clarity Act nearing implementation as potential tailwinds that could bolster prices.
Extreme Fear Dominates the Broader Index
However, not all market participants interpret the current situation in the same manner. The Crypto Fear & Greed Index, which considers volatility data, market momentum, social media signals, and Google Trends, registered a reading of 15 on Wednesday, indicating “extreme fear.” This contrasts with the optimism reflected in Santiment’s social media analysis.
Google Trends data for “Bitcoin” stood at around 71 as of Wednesday, down from a peak of 100 on March 5, suggesting a cooling of retail interest despite the price recovery.
Featured image from Pexels, chart from TradingView
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