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

【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.