Bitcoin’s price approaching $70,000 has sparked a change in market sentiment, leading to an increase in bullish posts among traders. However, one trader argues that the market still has a long way to go before it can be truly considered bullish.
Independent crypto analyst Matthew Hyland expressed his opinion on the matter, stating that the current sentiment is not as bullish as it may seem. He believes that the crypto industry tends to have a volatile mindset when it comes to sentiment, but a true shift in sentiment requires a rise in interest from retail investors. Hyland also noted that the outside world has not paid as much attention to crypto as it did in 2021.
Recent reports have shown that Google search volumes for the term “Bitcoin” reached a one-year low in the week of October 12, 2024. Hyland highlights that the total number of market participants is currently only around 10% of what it was in 2021 and about 50% of what it was earlier in 2024.
Despite this, the Crypto Fear & Greed Index, which measures emotions and sentiments towards Bitcoin and the broader crypto market, indicates a bullish territory for crypto among market participants. The index currently has a “Greed” score of 72, up 23 points from its previous “Neutral” score on October 12.
Prominent traders have also been expressing a bullish sentiment towards Bitcoin. MN Trading Capital founder Michael van de Poppe described the price chart as significantly bullish, while Glassnode lead analyst James Check questioned if there is a more bullish looking chart for Bitcoin anywhere else in the world.
However, an analytics firm warned that an excessive amount of bullish sentiment can lead to a market reversal. Onchain analytics platform Santiment stated that markets historically move in the opposite direction of the crowd’s expectations. They noted that currently, there are 1.8 bullish posts about Bitcoin for every bearish post, indicating a potential need for the crowd to slow down their expectations of a new Bitcoin all-time high.
In conclusion, while Bitcoin’s price increase and the rise in bullish posts from traders suggest a shift in sentiment, it is important to consider the overall market conditions and the potential for a market reversal due to excessive bullishness.