- Online searches for Bitcoin have peaked amid investor sentiment falling to record lows since the 2022 crypto winter.
- The 14-period RSI of BTC, ETH, and XRP indicates oversold conditions, signalling a possible rebound.
- Sustained institutional accumulation and positive developments in the US crypto market bill could catalyze key recoveries.
People are turning their interest back into Bitcoin (BTC), and this could be the turning point for the premier crypto asset and prime altcoins like Ethereum (ETH) and XRP. Online searches and investor sentiment both hint at a significant reversal ahead.
Retail Sentiment Catching Up
According to Google Trends, “Bitcoin” searches have topped on the 12-month chart around February 1 to 8 this year at 100. It was a significant spike from the 42 rating the term had the week prior.
The surge in Bitcoin searches occurred as the largest crypto asset slumped from roughly $81,500 to $60,000 in five days. The numbers were notably their lowest since October 2024.
Meanwhile, sentiment has bottomed out at its lowest level since the last crypto winter in 2022, with an “Extreme Greed” score of 6 on Saturday, based on the Crypto Fear & Greed Index. The dial only moved slightly at 7 on Sunday.
Based on the readings, “Extreme Fear” means investors are overly worried about the current state of the market. For people with high risk tolerance, the situation could be a good buying opportunity.
Borrowing from Warren Buffett, a veteran investor and Chairperson of Berkshire Hathaway, this could be a time to “be greedy when others are fearful.”
Bitcoin, Ethereum, and XRP Rebound
Whether or not most are willing to admit it, Bitcoin remains the key driver of sentiment in the broader crypto market. This is very evident in altcoins like Ethereum and XRP, which are highly correlated with BTC.
Beyond the sentiment metrics, the daily and weekly Relative Strength Index (RSI) readings for Bitcoin within the 14-period time frame have also bottomed. It screamed “oversold” at approximately 15 points on February 5 and at 28 points on the weekly chart, hinting at a possible near-term price reversal. Both ETH and XRP didn’t deviate much from the trend, showing strong correlation with BTC over the same span.
Bitcoin has recovered significantly from near $60,000 to $72,000 between Friday and Saturday, and is currently hovering between $67,000 and $71,000 over the last 24 hours. However, analysts believe it’s not out of the water yet, as it needs a clean break at the $72,000 resistance to invalidate the immediate bearish structure and target a rebound to the $80,000 range.
Along the way, Ethereum has been consolidating in the $1,800 to $2,100 range over the weekend, and could flip the script beyond the $2,200 mark.
On the other hand, XRP has shown a sharp rise from below $1.15 to over $1.50 in the same period. But then again, it still needs to surpass a heavy resistance at $1.60 to invalidate its stagnation at the mercy of the bears. A move past the $1.80 mark would be a strong signal that it’s gathering steam for a possible build-up mirroring its momentum in the 2025 bull phase.
Inbound Catalysts
The good news is that, despite retail dumping heavily lately, institutional investors have been relentlessly accumulating. Strategy, Bitmine, and other institutional whales have remained unshaken and see the trend as an opportunity to buy crypto at a discount. This is backed by Glassnode’s Accumulation Trend Score climbing to 0.68 across the weekend, and its continuation could sustain the key recovery in Bitcoin and prime alts.
Furthermore, the US, home to the world’s largest capital markets, remains a key determinant of overall investor sentiment, including in the crypto market. Hence, its make-or-break development in the ongoing deliberations on the crypto market structure bill could steer the direction of BTC, ETH, and XRP as they stand at a critical juncture.
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