Bitcoin (BTC) Massacre: Divided Sentiment and Data Delays Open a Vulnerable Market

Extreme Fear reached 11th place as market polarization, weak buyer quality and lower interest rate cuts fueled Bitcoin’s massive plunge in December.

According to CryptoQuant, the decline was not caused by a single major headline, but by a convergence of sentiment extremes, macro uncertainty and on-chain stress.

Bitcoin’s Sharpest Drop in Months

Social platforms reflected a complete disappearance of neutral sentiment as traders remained divided between ultra-bearish calls at $20,000-$70,000 and ultra-bullish forecasts at $100,000-$130,000. This ‘fragile sentiment vacuum’ created an environment in which even small shocks triggered excessive price reactions.

A major factor stemmed from the U.S. Department of Labor’s decision not to release employment figures for both October and November until December 16, leaving the Federal Reserve without crucial information ahead of policy decisions and sharply increasing uncertainty in the markets. Shares and risky assets were sold simultaneously.

Meanwhile, indicators within the chain pointed to further weakness. For example, the Coinbase Premium Index plunged deep into negative territory. This suggested declining institutional demand and a growing reliance on retail-driven flows from Binance.

CryptoQuant also stated that Short-Term Holder Whales are suffering $21.5 billion in unrealized losses, which is their largest loss in years. The latest decline was fueled by short-term capitulation, confirmed by a surge in buyer sales volume and panic-induced market orders. The Fear & Greed Index has now dropped to 11, firmly in Extreme Fears territory.

Next combat zone

After the correction phase, Binance spot volume data will be displayed shows a new trading range is between $70,000 and $90,000, and the Point of Control is now near $83,000, a level that is expected to attract price consolidation in the near term as the market looks for stability.

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While Bitcoin may be taking a break in this area, the main negative target remains the $70,000-$73,000 support band. This zone has significant technical weight and is validated by on-chain statistics, especially the realized price of whale holders with 100-1,000 BTC, whose average acquisition cost is almost $71,000.

Historically, this cohort has defended such levels, making it a decisive test of the market’s medium-term trajectory.