The bullish market mentality, aided by the price recovery, has led many analysts to believe that Bitcoin is declining in price.
Bitcoin
BTC
Tickets are cheap
$22,892
It hit a four-month high above $21,000 in the third week of January. The market saw its biggest investor optimism since July due to the rise in BTC prices in January.
The sentiment of the trading crowd reached a six-month high and the second highest sentiment in 14 months, according to data from crypto analytics firm Sentiment. This data suggests that traders consider Bitcoin’s price rebound as a sign of potential upside in the near future.
The term “investor sentiment/sentiment” describes how investors feel about a particular asset or financial market. It refers to the state of the market or the psychology of its participants, expressed by activity and changes in the price of goods sold in that market.
Bitcoin Weighted Social Sentiment Source: Sentiment
The chart above shows the biggest jump in investor sentiment since 2021. The first major emotional spike occurred in November 2021, after which the BTC price reached an all-time high of 68,789. The second major jump occurred amid signs of inflation from the United States Federal Reserve in July 2022, followed by a small increase in interest rates. Traders bought the dips at $19,000, although the bullish movement after the sentiment of the July 2022 mass was irrelevant due to the market sentiment.
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Related: Bitcoin price rally above $21k prompts analysts to check where the BTC price will go next
The last peak of mass sentiment came after the long winter of 2022. Market analysts believe that the rise in the price of BTC may indicate a market collapse. According to independent market analyst, HornHairs, the periods from low to high and high have remained stable since 2015 at 152 weeks and 52 weeks respectively.
When examining the long-term price behavior of Bitcoin, the time leading up to the previous up and down cycles is remarkably similar. Interestingly, the 2020 to 2021 cycle seems to follow the same trend.
Source: CoinTelegraph
