Bitcoin and Ethereum’s post-Christmas bounce fades as sentiment normalises
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Bitcoin’s brief recovery above $90,000 following the Christmas weekend has failed to gain traction, with price slipping back below $87,000 as market sentiment cooled from extreme pessimism to cautious neutrality. Data from Santiment shows that Bitcoin’s late-December bounce coincided with a sharp spike in negative social sentiment, a pattern often associated with short-term contrarian moves. However, unlike previous instances where fear gave way to sustained upside, this rally stalled almost as soon as sentiment began to normalise. Rather than triggering renewed buying interest, the shift away from fear has been followed by consolidation and indecision. Bitcoin and Ethereum sentiment moved first, price failed to follow through The Santiment chart highlights a familiar dynamic. Bitcoin rallied while fear, uncertainty, and doubt dominated social channels, then lost momentum as sentiment returned to neutral levels. This suggests the move was driven less by conviction buying and more by short covering and tactical positioning. Source: Santiment Crucially, sentiment did not flip bullish. Instead, it stabilised, indicating that traders stepped back rather than leaned into the recovery. That lack of follow-through has left Bitcoin without a clear directional catalyst. Ethereum showed a similar but slightly delayed pattern. ETH sentiment improved during the price bounce, briefly outperforming Bitcoin on a relative basis. That optimism has since faded, with sentiment now hovering slightly bearish as price failed to reclaim key resistance levels. Price structure points to compression, not recovery The 12-hour Bitcoin chart reinforces the message from sentiment data. Price remains locked in a broader downward structure defined by lower highs, with recent action compressing into a narrowing range around the mid-$80,000 region. Source: TradingView Despite several attempts, Bitcoin has been unable to sustain a break above the descending trend resistance. Each bounce has met selling pressure, suggesting supply remains active even as downside momentum slows. Ethereum’s…
Filed under: News - @ December 29, 2025 9:20 pm