Bitcoin's Resilient Revival: Market Sentiment Shows Signs of Recovery

Bitcoin (BTC) experienced a slight pullback on Friday as traders took profits after achieving new record highs earlier this week. Nevertheless, market sentiment is improving rapidly, as highlighted by Binance’s recent data indicating that Bitcoin’s emotional strength is shifting positively.

This improvement in investor sentiment suggests that more rallies might be on the horizon.

Bitcoin’s Emotional Meter Shifts Positive

The psychological outlook for BTC is noticeably altering, according to newly released data from Binance, one of the largest cryptocurrency exchanges globally. Starting this October, Binance’s composite emotional index, which reflects the relationship among market trends, investor emotions, and their confidence during major price movements, has been on a consistent upswing.

CryptoQuant has pointed out that the current emotional index reading of 1.47 marks a robust recovery from the negative levels experienced in mid-September, indicating renewed optimism and interest in purchasing as Bitcoin’s price stabilizes above its monthly moving averages.

Short-term trends are particularly telling, with the 7-day moving average reading at 3.7. However, the longer-term averages of 14-days (-3.91) and 30-days (-5.02) still reflect cautious sentiments as the overall market gradually transitions from fear to optimism. This divergence suggests an early-stage sentiment improvement without unnecessary exuberance.

In market terms, increases in emotional strength often coincide with the beginning of medium-term upward trends, particularly when Bitcoin upholds crucial technical support levels. The $120,000 mark has been identified as an essential support area, where reduced volatility around the indicator’s moving averages could foster market stability. Binance’s figures suggest that institutional investors are gradually re-entering, looking to optimize on lower selling liquidity across exchanges.

Should the indicator remain in its positive zone, Bitcoin may return to the $125,000-$130,000 range by mid-October. Sustained market stability could pave the way for another phase in the present bullish trend without sparking excessive speculative behavior.

No Traditional Cycle End in Sight?

Furthermore, crypto analyst Ted Pillows has mentioned that Bitcoin may be experiencing a structural shift in its market behavior. He argues that the conventional four-year price cycle, which traditionally characterized BTC’s trading history, could be behind us. The absence of the euphoric, blow-off characteristics that often conclude these cycles speaks to a more evolved, liquidity-focused market.

Pillows anticipates a substantial rise in global liquidity during Q4 2025 and Q1 2026, which could introduce new funds into digital assets and potentially extend the asset’s uptrend beyond typical cycle durations.