Definition ∞ A bearish sentiment flip indicates a sudden and significant shift in overall market participant outlook from optimistic to pessimistic. This change often occurs rapidly, driven by adverse news, regulatory concerns, or unexpected price declines. It marks a transition where a majority of market participants anticipate downward price movement.
Context ∞ Reports frequently cite a bearish sentiment flip when analyzing sharp market reversals or sustained periods of price decline in digital asset markets. This shift can precede further price depreciation as investor confidence erodes and selling pressure intensifies. Monitoring this sentiment change is crucial for understanding short-to-medium term market direction.