A five-month selloff may have triggered a rally in Bitcoin, with some traders believing the bears are about to face their first real test of the cycle.
Oversold situation attracts market attention
On Tuesday, Bitcoin rose again above $70,000, sparking a social media buzz that market intelligence firm Santiment described as “FOMO territory.”
Positive discussion across the social media world plummeted on Monday, but quickly recovered as prices rose.
Shifts were quick. Santiment said crypto markets operate around the clock and are not tied to a single government or financial system, so they tend to move rapidly during times of uncertainty.
Image: Tanganica.com
Part of the price recovery was driven by US President Donald Trump’s comments that the conflict with Iran was “very complete, almost complete,” suggesting tensions in the Middle East may be easing.
Oil prices also fell accordingly. This has given crypto traders room to work.
Trump’s remarks were followed almost immediately by a post on Truth Social warning that the United States would increase military pressure on Iran if oil supplies were cut off.
🤑 Bitcoin sentiment is back in FOMO territory after its market value exceeded $70,000 on Tuesday. On X, Reddit, Telegram, and other crypto-related discussions, crowds are emboldened by President Trump’s comments that the war could soon end and oil prices could reverse. pic.twitter.com/S21cXOUM0F
— Santiment (@santimentfeed) March 10, 2026
The mixed signals couldn’t stop Bitcoin’s rally, but added a layer of uncertainty that traders can’t ignore.
Big strategy purchases add fuel
Ryan McMillin, chief investment officer at Australian crypto investment manager Merkle Tree Capital, said the geopolitical backdrop was not the only factor in the improvement.
He pointed to continued buying by institutional investors, including Strategy, which bought nearly 18,000 Bitcoin last week and made a second acquisition earlier this week.
It was also important to note that Bitcoin remained above its February lows. The asset has fallen steadily from its all-time high of $126,000 in October, according to the data, and is technically in decline for the fifth straight month of declines.
Such long-term slippages can trigger a recovery in relief even without a major trigger, McMillin said.
“Shorts are more vulnerable,” he says. “Short-side liquidity could be squeezed towards $80,000 before we reach an actual upside or downside decision point.”
He also cited slower inflation, the expected appointment of a new Federal Reserve chairman in the coming months, and the impending implementation of transparency laws as tailwinds that could support prices.
Extreme fear continues to dominate broad indexes
Not everyone reads a moment the same way. The Crypto Fear & Greed Index, extracted from volatility data, market momentum, social media signals, and Google Trends, was at 15 on Wednesday, sinking deep into “extreme fear” territory. This interpretation runs counter to the optimism that appears in Santimento’s social tracking.
Google Trends data for “Bitcoin” was around 71 as of Wednesday, down from a March 5 high of 100, suggesting retail interest is down from recent highs even as prices have recovered.
Featured images from Pexels, charts from TradingView
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