Retail investors panic-buying opportunity? The inverse game between sentiment and price

Question

【Crypto World】The latest data from the crypto research institution Santiment is quite interesting—after yesterday’s sharp drop in prices, retail investors’ voices are all bearish, and the market is filled with a strong sense of panic.

But there is a phenomenon that has been verified multiple times: market sentiment and price trends often move in opposite directions. In other words, when most people start to panic and choose to sell, it may actually be the night before a price rebound.

Historical data repeatedly proves this rule. The most pessimistic moments of retail investor sentiment often mark the formation of the bottom in a decline. This is not just hype, but an objective reflection of market psychology—after extreme pessimism, emotional recovery itself can drive prices higher.

LeekCutter · Accepted Answer

Retail investor panic is truly a signal for us to get on board.

MEVHunterX · Answer

Retail investors run, I buy the dip. This trick has been effective for so many years.

VitalikFanAccount · Answer

Panic moments are the signals to get on board. History always repeats itself. When retail investors panic, I jump in.

RektRecorder · Answer

Retail investor panic is just the signal for me to get in; history always repeats itself.

TokenStorm · Answer

When retail investors panic, on-chain data is the most interesting. A quick backtest of this wave of data from Santiment will tell you the win rate. Anyway, I’ve gone all-in again.

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Historical patterns are always 100% accurate in hindsight. When it’s truly profitable, no one believes it... But there is indeed arbitrage space in the technical analysis.

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When the timid panic, we should watch what the on-chain whales are doing. Data explains everything. Of course, this is not investment advice haha.

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Every time I talk about contrarian betting, I still get caught in the storm, but I still have to bet. The last one to leave is me.

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Contrarian to emotions? Funny, my risk coefficient tells me the odds need to drop further before I go all-in.

MetaverseLandlord · Answer

Retail investors panic, I just laugh. Historical data doesn't lie.

DegenGambler · Answer

Hey, it's the same reverse theory again. Every time you say it's right to buy during panic, but what happens then?