According to analytics firm Santiment, Bitcoin signals a bullish signal due to this historical factor
According to market research platform Santiment, Bitcoin (BTC) signals a bullish signal based on a historical factor.
In a new thread, the crypto analytics firm says it appears the leading crypto asset by market cap is losing momentum after rising nearly 150% since October.
However, Santiment points out that historically, the more people are concerned about BTC in the long term, the higher the chances of a further market rise.
“Is crypto still in a bull market after the price of Bitcoin rose +144% since October 15th? Well, according to the crowd, the faith has clearly faltered. Historically, less long-term optimism increases the likelihood of a further market rise.”
Source: Santiment/X
Due to the crowd's changing BTC outlook, Bitcoin bulls should be careful that market sentiment remains bearish, according to Santiment.
“Since the big correction three weeks ago, crowd sentiment towards Bitcoin and the crypto markets in general has been fluctuating. Even though the BTC halving is just two weeks away, trader sentiment reflects FUD (fear, uncertainty and doubt) and pessimistic expectations.
With prices temporarily rebounding to $69,000 on Thursday, bulls should hope that the general consensus remains negative. Historically, markets move in the opposite direction to crowd expectations, so some of the best times to buy are when most do not believe a rally can begin or continue.”
Source: Santiment/X
Santiment further states that the market believes that BTC's recent decline is due to the government selling the 10,000 BTC seized from the defunct online black marketplace Silk Road. The crypto analytics firm says BTC price spikes typically occur when the crowd becomes concerned about Silk Road's seized Bitcoin stack.
“Bitcoin has risen back above $69,000 after falling below $65,000 just two days ago. The reason for the decline, according to most crypto communities, is attributed to the US government authorities' admission of selling almost 10,000 BTC from the Silk Road seizure.
There are expected to be four more sell-offs of similar size throughout 2024, which has caused great concern among traders. As we can see, there were two major spikes in audience interest related to Silk Road in 2024, and both indicated that the crypto market would see a near-immediate surge immediately afterward.
Markets usually move in the opposite direction to the expectations of the masses. So if the fear continues, further price increases can be expected.”
Source: Santiment/X
Bitcoin is trading at $67,905 at the time of writing, down slightly over the last day.
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