Crypto traders are becoming increasingly bearish, but history suggests that widespread fear can sometimes create opportunities for a market-wide recovery.

Retail sentiment around some of the top crypto assets has taken a sharp bearish turn as the market tests major lows, according to Santiment.

Data from social platforms shows Bitcoin recording 0.82 bullish comments for every bearish one, while Ethereum stands at 0.88. XRP looks even weaker, with the ratio falling to just 0.49.

Rebound Close?

But this widespread pessimism may not be entirely bad news. Santiment explained that extreme retail fear can create conditions for a market rebound, as major rallies often begin when…