According to a cryptocurrency trader, it is simple for those involved in the market to be “convinced sentiment is one way or the other,” even though sentiment isn’t “that bullish currently.”
A change in market attitude has been brought about by Bitcoin’s down $68.268 and price approaching $70,000, which has led to an increase in traders’ positive posts. One trader cautions, though, that the market isn’t quite there yet and has more work to do before it can be deemed bullish.
In an X post on October 18, independent cryptocurrency expert Matthew Hyland expressed his opinion that the attitude is not optimistic at the moment.
The cryptocurrency market is a reflection of itself
According to him, people working in the cryptocurrency sector may have an erratic attitude toward emotion, but a change in market sentiment also necessitates a rise in the attention of individual investors.
The outside world has only paid a small portion of the attention that Crypto received in 2021, Hyland continued, “because this place is an echo chamber, it’s easy to be convinced sentiment is one way or the other.”
According to recent reports, the week of October 12, 2024, saw a one-year low in Google search volume for the term “Bitcoin.”
According to Hyland, the total number of market players today is roughly 50% of “what it was earlier” in 2024 and 10% of what it was in 2021.
In the meantime, market participants’ current “emotions and sentiments” regarding Bitcoin and the larger cryptocurrency market are reflected in the Crypto Fear and Greed Index, which indicates favorable terrain for the industry.
The Index currently has a “Greed” score of 72, which is 23 points higher than its “Neutral” value of 49 on October 12.
Since October 12, the price of bitcoin has risen 9.37%, and well-known traders have also been expressing a bullish outlook on price chart updates.
In an X post on October 19, Michael van de Poppe, the founder of MN Trading Capital, stated that “this is a significantly bullish chart for Bitcoin.”
In an X post on October 18, Glassnode lead analyst James Check posed the question, “Is there a more bullish looking price chart on the planet right now than Bitcoin?”
Although more bullish posts from the crypto community may potentially be a sign of more positive sentiment, an analytics firm cautioned that excessive frothiness could cause a market reversal.
Onchain analytics company Santiment said on September 30 that investors hoping for a fresh Bitcoin record high could have to wait until the market “slows down their own expectations.”
It examined social mood data and found that, at the moment, there are 1.8 posts about Bitcoin that are bullish for every post that is pessimistic.
According to Santiment, “historically, markets always move in the opposite direction of the crowd’s expectations.”
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