Santiment Warning: Market’s Collective Frenzy Is Not a Good Sign—Bitcoin Needs to Cool Down After Breaking $80,000

Bitcoin’s price has continued to rebound this week and briefly surged above the $80,000 level. Market sentiment completed a dramatic reversal in a short period—from an earlier “extremely pessimistic” mood to a “super FOMO” atmosphere.

According to on-chain analytics firm Santiment’s monitoring, in just the past 72 hours this week, market sentiment switched from extreme fear to an all-out FOMO surge-chasing state.

Specifically, on Monday this week the overall market was bearish. Bitcoin traded around $76,000 and moved sideways with stagnation. Negative sentiment spread across the entire market, and the long/short sentiment indicators fell into the panic range. At that time, the firm had regarded the panic conditions as a potential buy signal.

However, starting on April 22, Bitcoin’s price rose sharply and at one point neared the $80,000 mark. As of now, the coin price is around $78,000, up nearly 4% on the week, but it still falls short of the $126,000 all-time high reached in October last year by 38%.

In response to the currently high-spirited market sentiment, Santiment issued a risk warning, saying that today’s collective frenzy is not a positive signal. Because price increases driven purely by emotion-led speculation are difficult to sustain long term.

Therefore, the company believes that if market optimism cools down moderately first, and then Bitcoin is pushed to steadily break through the key resistance level of $80,000, the validity and stability of the breakout would be stronger.

Meanwhile, analyst Carmelo Alemán said that Bitcoin’s rise this week—from $76,000 to $79,400—was mainly driven by futures trading rather than spot buying support.

In the futures market, open interest increased from about $24.9 billion to $28 billion; and the total liquidation amount of BTC and ETH shorts exceeded $1.1 billion. This means that a large number of leveraged short positions had to be closed, thereby pushing prices higher.

The analysis also warns that this derivative-driven rally, though swift, will become unstable if it lacks sustained spot demand support. Once buying pressure eases, the market is prone to reverse.

In summary, the first three days of the week saw panic, followed by FOMO. With BTC once again edging toward the key resistance level of $80,000, it is worth close focus from the market.

But this rally is mainly driven by leverage liquidations and market sentiment. If spot demand cannot keep up, this rebound might only be a short-term “last gleam of hope.”

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