Bitcoin Faces Extended FUD on Social Media; Can Long Consolidation Prompt Major Price Surge?
Summary:
Amid range-bound trading around $65,000, Bitcoin has encountered an extended level of fear, uncertainty, and doubt (FUD) on social media network "X," as per cryptocurrency data analysis platform, Santiment. On the flip side, major events like the approval of Bitcoin ETFs and the Bitcoin halving saw a boost in sentiment. Some analysts predict that this prolonged consolidation period could preface a significant price surge. Simultaneously, the Fear and Greed Index indicated 'greed' with a current standing at 63, which has dropped by 11 points in the past week.
In the midst of range-bound trading around $65,000, Bitcoin (BTC) has been grappling with a prolonged phase of fear, uncertainty, and doubt, often referred to as "FUD," particularly on the social media platform "X." This information comes from Santiment, a cryptocurrency data analysis platform. The current level of apprehension is unusual and is leading to a wave of panic selling among traders. The crypto community's interest in Bitcoin seems to be waning or turning negative as prices hover around the $65K-$66K bracket. Bitcoin's value has decreased by 3.57% in the past week according to CoinMarketCap.
Over the past seven days, Bitcoin's value has oscillated, peaking near $67,294 and plummeting to around $64,180, as CoinMarketCap data suggests. Santiment brought attention to their Weighted Sentiment Index, which gauges the balance of positive to negative mentions of Bitcoin on the platform "X." This indicator has been persistently negative since May 23. Currently, it is at -0.738, signaling predominantly negative mentions of Bitcoin on "X".
Despite this, important developments like the approval of 11 spot Bitcoin ETFs on January 10, and the Bitcoin "halving" on April 20, boosted this sentiment to 4.49 and 2.35, respectively, demonstrating positively perceived times for Bitcoin on platform "X".
Several members of the crypto community—traders and analysts included—have displayed negative attitudes towards Bitcoin on social media. James Check, also known as "Checkmatey," who serves as Glassnode's primary analyst, stated that Bitcoin is roughly 60 days into a mundane 150-day period of range-bound trading since it halved its supply distribution on June 19.
Some speculate that this prolonged period of consolidation could lead to a significant spike in price. On June 13, Cointelegraph reported that Bitcoin was in its lengthiest consolidation phase to date, 92 days, which prompted hypotheses of an impending substantial price rally. "The more extended the consolidation, the more substantial the subsequent price swing," posited crypto trader Daan Crypto Trades.
At the same time, another tool for assessing cryptocurrency market sentiment, the "Fear and Greed Index," recorded a score of 63, pointing to "Greed," which has lowered from its previous position by 11 points in the last seven days. In addition to analyzing social media sentiments, this index considers factors such as volatility, the momentum and volume of the market, market dominance, and current trends. Over and above, readers are urged to perform their own research before deciding on any trading or investment moves, as they come with inherent risks.
Published At
6/21/2024 9:04:03 AM
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