Five months of losses may have set Bitcoin up for a rebound — and some traders think the bears are about to face their first real test this cycle.
Oversold Conditions Catch The Market’s Attention
Bitcoin climbed back above $70,000 on Tuesday, nudging social media chatter into what market intelligence firm Santiment describes as “FOMO territory.”
Positive discussions across the social media sphere nosedived on Monday before recovering sharply as prices ticked upward.
The shift was swift. According to Santiment, crypto markets tend to move fast during periods of uncertainty because they operate around the clock and are not tied to any single government or financial system.
Image: Tanganica.com
The price recovery was partly triggered by comments from US President Donald Trump, who said the conflict with Iran was “very complete, pretty much” — a signal that tensions in the Middle East may be easing.
Oil prices moved lower in response. That gave crypto traders something to work with.
Trump’s remarks were followed almost immediately by a post on Truth Social warning that the US would increase military pressure on Iran if oil supply was disrupted.
🤑 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 mixed signals didn’t stop the Bitcoin rally, but they added a layer of uncertainty that traders couldn’t ignore.
Strategy’s Big Buys Add Fuel
Ryan McMillin, chief investment officer at Australian crypto investment manager Merkle Tree Capital, said that the geopolitical backdrop wasn’t the only thing driving improved sentiment.
He pointed to continued institutional buying, including from Strategy, which purchased nearly 18,000 Bitcoin last week and made a second acquisition earlier this week.
Bitcoin holding above its February lows also mattered. Data shows the asset dropped steadily from an all-time high of $126,000 in October — five straight months of declines that left it technically beaten down.
According to McMillin, that kind of extended slide can set up a relief rally even without a major catalyst.
“Shorts are vulnerable,” he said. “Liquidity on the short side could get squeezed toward $80,000 before a true higher/lower decision point.”
He also flagged cooling inflation, a new Federal Reserve chair expected within months, and the Clarity Act moving closer to implementation as tailwinds that could support prices.
Extreme Fear Still Rules The Broader Index
Not everyone is reading the moment the same way. The Crypto Fear & Greed Index — which pulls from volatility data, market momentum, social media signals, and Google Trends — sat at 15 on Wednesday, deep in “extreme fear” territory. That reading cuts against the optimism showing up in Santiment’s social tracking.
Google Trends data for “Bitcoin” scored around 71 as of Wednesday, down from a peak of 100 on March 5, suggesting retail interest has cooled from its recent high even as prices recovered.
Featured image from Pexels, chart from TradingView
