Bitcoin sentiment is at an all time high!

Bitcoin sentiment is at an all time high!

Bitcoin (BTC) hit a four-month high above $21,000 in the third week of January, boosting traders’ optimism. The market saw the strongest investor optimism since July, thanks to the BTC price rebound in January.

According to data from cryptocurrency analytics firm Santiment, trading public sentiment hit a six-month high, and the second-highest bullish sentiment in the past 14 months. The data suggests that traders see the rise in bitcoin price as a sign of a possible bigger breakout in the near future.

The term “crowd/investor sentiment” describes the general sentiment of an investor towards a particular asset or financial market. It refers to the mood of a market, or the psychology of its participants, as expressed through activity and changes in the price of the asset traded in that market.

The weighted social sentiment of bitcoin Source: Santiment

The chart above shows three major spikes in investor sentiment since 2021. The first major spike in sentiment came in November 2021, after which the price of BTC rose to a new all-time high of $68,789. The second major spike occurred in July 2022, when the US Federal Reserve signaled a possible fall in inflation, followed by a slight rise in prices. Although the price rise after the peak in July 2022 sentiment was not very significant due to the bearish sentiment in the broader market, traders bought the decline to $19,000.

Also Read: Bitcoin Rally Above $21,000 Prompts Analysts To Explore Where The Asset’s Price Could Go

The latest spike in crowd sentiment came after a long winter in 2022. Market analysts believe that the recovery in the price of BTC could signal the bottom of the market. According to independent market analyst HornHairs, the time from bass to peak and from peak to trough has remained stable since 2015, at 152 weeks and 52 weeks, respectively.

$BTC #Bitcoin. 2015-2017 bull market: 1064 days, 2017-2018 bull market: 364 days, 2018-2021 bull market: 1064 days, 2021 – * current market * low: 364 days. Days left before the summit if we copy the cycle time scale again: 1001 days HornHairs (@CryptoHornHairs) January 12, 2023

The rise to the top and bottom of previous cycles look similarly surprising when you look at bitcoin price behavior over the long term. Most interestingly, the cycle from 2020 to 2021 appears to follow a similar pattern.

Cardano Prognose 2021-2025

Buy Cardano? The price forecast sees ADA rising to $0.72 in 2023

Tesla Accepts Dogecoin (DOGE) Payments: The Next Bitcoin?

Tesla Accepts Dogecoin (DOGE) Payments: The Next Bitcoin?