As fear fades and FOMO returns to the crypto market, analysts are warning that traders rushing into Bitcoin’s latest rally could increase the chances of sharp corrections and sudden volatility.
According to data released by Santiment on May 7, social sentiment surrounding Bitcoin has reached its most bullish level in four months after the asset climbed above the $80,000 mark earlier this week.
The shift highlights how quickly market sentiment has changed after weeks of uncertainty driven by macroeconomic concerns and crypto related security incidents.
Traders Grow Increasingly Bullish on Bitcoin
Retail investors are once again flooding social media with optimistic Bitcoin predictions. Santiment tracked the trend using its Positive to Negative Sentiment metric, which analyzes posts and discussions across major platforms using machine learning to measure bullish and bearish commentary.
The indicator currently stands at 1.37, its highest level since early January when the crypto market was benefiting from strong momentum at the end of 2025.
Just weeks earlier in mid April, sentiment had dropped sharply into bearish territory following the KelpDAO exploit. At the time, Santiment suggested that the panic created a healthier environment for a market rebound by forcing weaker hands out of the market.
That rebound has now arrived, but analysts say excessive optimism introduces new risks.
Santiment warned that when fear disappears and FOMO dominates market conversations, traders often enter positions late in a rally, increasing the likelihood of local tops, profit taking, and sudden price swings.
The analytics firm clarified that the bullish trend may still continue, but noted that the market’s risk level is significantly higher now than it was during the recent panic driven selloff.
Analysts Watch Key Bitcoin Levels
At the time of writing, Bitcoin was trading around $81,000, reflecting gains of approximately 7.5% over the past week and 18% during the last month.
The cryptocurrency briefly touched $82,000 on May 6, reaching its highest level in three months before experiencing a slight pullback. Over the past 24 hours, Bitcoin traded within a range of roughly $80,800 to $82,800.
Despite the recovery, not all analysts believe the market structure is fully bullish. Analysts at Bitfinex described Bitcoin’s climb back to $80,000 as potentially deceptive, arguing that current market conditions may not yet support a sustained breakout.
Meanwhile, traders are closely monitoring whether Bitcoin can reclaim higher realized price zones linked to investors who bought during late 2025 and early 2026.
Market analyst IT Tech stated that Bitcoin must break above the $89,000 level and maintain support there before a long term market bottom can be confirmed.
The analyst also identified several realized price zones between $89,000 and $112,000 where previously trapped investors could look to exit positions once prices recover, potentially creating additional selling pressure.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
