The recent downturn in the market has dampened the previously optimistic sentiment surrounding Bitcoin’s price, suggesting a possible market bottom. According to data from Santiment, the number of bullish remarks about Bitcoin on social media platforms like X, Reddit, Telegram, 4Chan, and BitcoinTalk has significantly decreased in recent weeks. BTC’s price has been trading sideways since the Bitcoin halving in April.
Santiment’s data indicates that trader sentiment was most bullish in early April leading up to the halving. However, over the past three months, optimism has gradually declined as traders have lost confidence in the market’s ability to reach new all-time highs. Although bearish sentiment has also decreased during this time, it hasn’t dropped as dramatically as bullish sentiment. Santiment suggests that the decline in trader euphoria could be a signal of a market bottom.
A market bottom indicates an upcoming reversal in the market trend. When an asset is undervalued or trading at its lowest point, investors often see it as an opportunity to buy. From a technical analysis perspective, the lowest level of support for an asset is referred to as the bottom.
Bitcoin reached a new all-time high on March 14, reaching $73,780 on Coinbase. Since then, the price has been trading between $60,000 and $70,000, briefly dropping below $60,000 before recovering key support. Currently, BTC is trading at $61,500.
In previous halving cycles, Bitcoin has typically reached a new all-time high after the event. The price usually starts to rise about a month before the halving, driven by the anticipation of increased scarcity. However, the surge doesn’t happen immediately after the halving. Instead, the price tends to consolidate or move sideways before experiencing a bullish breakout.
Bitcoin analyst Willy Woo believes that the BTC price will recover once weak miners exit the market and the hashrate improves. He noted that in 2017, it took 24 days for the hashrate to recover, while in 2021, it only took eight days. However, in 2024, the recovery has already taken 61 days.
Another popular Bitcoin analyst, Rekt Capital, suggests that Bitcoin is currently consolidating within the post-halving reaccumulation range. The upper resistance level of the range is around $71,500, while the lower support level is approximately $60,600, which is the current price of BTC.