Data from on-chain analytics firm Santiment shows that Bitcoin sentiment turned bearish just before the asset's price rebounded from the $27,100 level. The "social volume" indicator, which measures the total number of social media text documents mentioning cryptocurrency or Bitcoin, showed high levels of fear around the time of the local bottom during the past day.

The social volume is significant as it tells us about the amount of discussion certain topics are getting from social media participants at the moment. The recent spike in bearish sentiment may be an example of the pattern where local bottoms form when FUD takes over the minds of investors.