Dwindling Positive Sentiment Around Bitcoin Could Signal Market Bottom, Says Santiment
Summary:
Crypto analytic firm Santiment indicates that the decrease in bullish remarks about Bitcoin across social platforms potentially signals a market bottom. The firm notes that the subsequent waning confidence amongst traders could indicate an upcoming trend reversal, viewing this as an investment opportunity. Bitcoin's trade price remains in a narrow range, and experts suggest a recovery will occur as "weak miners" exit and the hashrate rebounds. Both Rekt Capital and Willy Woo predict a consolidation phase, given the historical pattern of Bitcoin's performance post-halving.
The current downward trend in the market has quelled the once rampant optimism and excitement over Bitcoin's value, suggesting that the market may have reached its nadir. Crypto analysis company, Santiment, has revealed a significant decrease in positive chatter about Bitcoin (BTC) on social media platforms such as X, Reddit, Telegram, 4Chan, and BitcoinTalk over the past several weeks, coinciding with BTC's stagnant price since April's Bitcoin halving.
According to data from Santiment, public enthusiasm for Bitcoin was at its peak at the beginning of April, just prior to the Bitcoin halving. However, the past three months have seen a gradual decrease in trader optimism, as the cryptocurrency's failure to achieve new record highs has weakened market confidence.
Interestingly, the volume of negative commentary, while also declining over this period, has not dropped as sharply as the positive banter. Santiment suggests this drop in trader enthusiasm for Bitcoin may signify a market bottom.
A bottom signal is typically seen as the precursor to a market reversal trend. It generally comes into play at a point when an asset is perceived as undervalued or trading at its lowest, often marking an ideal buying opportunity for investors. From a technical perspective, the lowest level of support for an asset is referred to as the bottom.
Bitcoin achieved a fresh record high on March 14, clocking up a price of $73,780 on Coinbae. Since that time, the leading cryptocurrency has been trading within a $60,000-$70,000 bracket, occasionally dipping under the $60,000 mark before retrieving key support. At the moment, BTC's trading price is $61,500.
Remarkably, every four-year halving cycle has led to a new all-time high for Bitcoin post-halving. The anticipation of increased scarcity usually triggers a surge in Bitcoin's price a month before halving, but not immediately afterwards. Instead, post-halving, prices typically become static or begin to consolidate before going bullish.
Bitcoin analyst, Willy Woo, has projected that the price of BTC will recover as "weak miners exit and hashrate bounces back." He highlighted that the recovery took only eight days in 2021, compared to 24 days in 2017. However, in 2024, the recovery has taken 61 days thus far.
Another renowned Bitcoin analyst, Rekt Capital, stated that Bitcoin persists in the post-halving accumulation phase. The consolidation range is roughly between a resistance level of $71,500 and a support level of $60,600, which is Bitcoin's current price.
Published At
6/28/2024 10:30:47 AM
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