Bitcoin FOMO turns to FUD – Is September turning bearish for BTC?

“This may be Bitcoin’s [BTC] biggest test yet” is how the market is currently describing the situation.

In just under three weeks, the markets have changed drastically. Back then, it was FOMO, as the Fear & Greed Index peaked at 74, which meant strong greed for investors and coincided with BTC’s $82k reclamation. Now it’s 50, meaning that Bitcoin is precisely in the middle of FUD and FOMO.

Visually, nothing illustrates this better than Santiment’s recent report. From the 19th to the 21st of August, BTC was heading towards $80k, triggering a strong rise in bullish social chatter. Then on the 3rd of September, FOMO peaked again as BTC broke above $80k. However, by the 15th of September, sentiment flipped toward FUD.

Bitcoin fell after the Senate failed to advance the CLARITY Act, while discussions around lower prices reached their highest level for the month.

In short, where the index moves next will set the tone for Bitcoin’s next move. 

It’s here that CryptoQuant’s recent report starts to gain weight. It showed Bitcoin’s Bull Score dropping from 80 to 60 in just one week. That’s a sign that the bullish setup is losing strength, with momentum and market conditions starting to weaken. With the CLARITY Act stalled and the Fed hiking rates for the first time since 2023, the Bull Score adds another warning sign for Bitcoin.