Santiment, a market intelligence platform for social metrics, sees signs that the crypto crowd believes the bull market has ended, although a recovery might be on the horizon.
What Happened: According to Santiment's latest tweet, the 16% drop in Bitcoin’s BTC/USD market value since its all-time high of $73,600 on March 14 led to a strong increase of bearish mentions.
Santiment points out that historically, prices tend to move in the opposite direction of mass traders’ expectations. The firm observed a quick drop-off in Fear of Missing Out (FOMO) and a notable rise in Fear, Uncertainty, and Doubt (FUD), which it believes could signal a potential recovery for cryptocurrency "either right before or shortly after the halving."
The firm also noted an increase in mentions of a bear market.
- Stockmoney Lizards highlighted this week several factors that predict a "mid-term correction" for Bitcoin.
- 10x Research also points to the Bitcoin halving as a sell-off event, thereby providing potential buying opportunities.
- Cold Blooded Shiller cautioned investors of a 30% pullback in Bitcoin prices, but considers it a sign of strength.
Also Read: What Do The Three Phases Of The Bitcoin Halving Mean?
Why It Matters: The views expressed by Santiment provide insight into the current sentiment of the crypto crowd, which can influence market trends.
Crypto liquidations in the past 24 hours have been rising, with a surge of 61.9% to $240.97 million. Coinglass data points out that long liquidations account for a major part of the total reflecting optimistic sentiment among the trader community.
In the past 24 hours, 80,830 traders were liquidated, with the largest single liquidation valued at $5.34 million.
However, it’s important to note that while Santiment’s analysis provides a valuable perspective, market trends can be unpredictable and are influenced by various factors. Therefore, investors should consider this information part of a broader market analysis.
Price Action: Bitcoin is down 0.2% over the past 24 hours, trading around $62,700 at the time of writing. The global crypto market capitalization stands at $2.4 trillion. The Crypto Fear & Greed Index is currently in the neutral zone at 57.
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Image: Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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