Market Sentiment Index Reversal: When everyone is bearish, a big rebound is often just around the corner

RektRecovery · 2025-12-29T07:38:09+00:00

Recently, analysts have observed that the market sentiment index shows a generally bearish outlook, and historical data indicates that markets often move in the opposite direction after a consensus is formed. The current "index pessimism" phase may last for a longer period, and investors should stay calm and be alert to short-term emotional fluctuations.

RektRecovery

2025-12-29 07:38:09

Abstract generation in progress

【Blockchain Rhythm】 Recently, an analyst made an interesting observation based on the Market Sentiment Index (which combines media articles, X platform data, and several other sentiment indicators)—the current market consensus has shifted to bearish.

This phenomenon actually follows a pattern. The analyst mentioned that once a consensus is formed, the market often goes against it. There are two clear historical examples: the period from July to October 2024, and from February to April 2025, both of which demonstrated this situation. Simply put—most people’s judgments are often wrong.

Of course, the current situation also has its particularities. The analyst believes that this “index pessimism” phase could be prolonged, especially if the market truly enters a long-term bear market. Currently, this phase only began in early November. Although the indicator itself leans towards bullishness, in a bear market environment, caution and patience are still necessary. Don’t be overwhelmed by short-term emotions; calm observation is the key.

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RamenDeFiSurvivor

· 12-30 09:38

It's the same set of "contrarian indicators" again... Every time they say most people are wrong, but why are so few making money? --- So now, is it time to bottom fish or keep eating dirt? Seeking advice. --- I just want to know how long this wave of pessimism can last. Hang in there, everyone. --- 2024 was indeed a slap in the face, but is it really the same this time? Feels a bit different. --- The index says up, but the psychology says down. My wallet leans more towards believing in pessimism... --- Stop with these empty talks. Just ask if I can bottom fish. --- This idea isn't bad, but playing contrarian indicators in a bear market is playing with fire. I've been burned before. --- Wait, according to this logic, should I buy now? I want to get in, but I'm a bit scared.

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OffchainWinner

· 12-29 08:07

When everyone is bearish, is it actually the time to buy? Sounds like you're about to get trapped again.

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BanklessAtHeart

· 12-29 07:55

Here we go again, most people are wrong? Then why am I still losing? --- So should I now buy the dip or keep lying flat, seeking guidance? --- History will repeat this logic, but your wallet's coins are already gone. --- Wait, does this mean I should now operate in the opposite direction? Or continue resisting? --- A pessimistic index is a signal to get in, I don’t believe you. --- Wow, every time they say emotional reversal, why have I never made any profit? --- Can this theory be used in a bear market environment? Feels too risky. --- Feels like they're just storytelling again; nothing works well in actual operation. --- So does that mean the bottom is near? Or continue the chopping phase? --- Looking at this analysis, should I stock up more coins?

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TokenVelocity

· 12-29 07:54

Here we go again? Every time you say most people are wrong, and then you are wrong too haha

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LayoffMiner

· 12-29 07:53

Seeing everyone bearish only makes me more determined; history has repeatedly validated this logic.

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SybilSlayer

· 12-29 07:45

Are all bearish signals actually leading to a rise? I fell for this trick last year, but this time I really feel it's a bit different. Alright, anyway, one person's judgment is worth a few bucks, just look at the indicators. Wait, isn't this logic again a survivor bias? How long can a bear market last? Does it have to wait until next year? Most people are wrong, so I am wrong too. Perfect. Reverse operation users are about to rise again. Even when indicators are bullish, why do they still make us cautious? Who are they trying to scare? It feels like analysts are just saying "I don't know" in a more complicated way. History will repeat itself, but this time the script is different, right? Can you really trust the sentiment index? It all depends on whose voice is louder.

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