Bitcoin (BTC) has flown past the USD $52k (AUD $80k) mark and is currently up 17% from last week, while the Fear & Greed Index shows the market is in a bullish sentiment, with a score of 72, indicating Greed.

But search terms for crypto and Bitcoin are still nowhere near what they were in the last bull run, with both approx. at a 25% level from the 2021 bull.

Bitcoin interest over time, past 5 years, source: Google Trends

As we are inching back to all-time highs, and hopefully exceeding them, it’s interesting to note that we have already reached a new record:

The highest Bitcoin price we have ever seen on Valentine’s Day.

The below chart (created by ChatGPT with data from Documenting Bitcoin) shows how BTC went from humble beginnings to a high of USD $49k (AUD $75.5k) in 2021 to the current high.  

Historic Bitcoin price on Valentine’s Day, source: ChatGPT/ Documenting Bitcoin

Santiment Believes Crypto Crowd Becoming More Greedy

So, will we see the uptrend continue? Market analyst RektCapital believes there is not much in terms of minor resistance on the way before we are hitting a major resistance level.

And a recent Santiment analysis suggests that traders are intensely contesting Bitcoin’s value around the USD $50K mark, emphasising the significant influence of psychological support levels on the top cryptocurrency’s price.

The sentiment among traders, swinging between Fear of Missing Out (FOMO) and Fear, Uncertainty, and Doubt (FUD), plays a crucial role in whether Bitcoin’s price can sustainably exceed these milestones.

The observation made when Bitcoin first crossed USD $50K indicates a pattern: anticipation for higher price levels, like USD $55K (AUD $84k), can lead to a temporary peak in price. Santiment said this pattern was also noted when Bitcoin surpassed USD $45K (AUD $69k), followed by immediate speculation about reaching USD $55K.

Source: Santiment

Santiment suggests that the reactions of the crowd to crossing major price milestones can provide insights into market dynamics. Pure celebration of a newly eclipsed price level might indicate a healthy market reaction.

However, if there’s a sudden shift towards expecting much higher prices than the current level, it may signal that the market is becoming overly greedy, indicating a possible local top and suggesting caution among traders. Their analysis stresses the importance of monitoring community sentiment, social engagement (as in Google Trends) and expectations as indicators of market trends and potential price movements.

The post BTC Passes $52k, What’s Next for the Crypto Market? Analysts Weigh In appeared first on Crypto News Australia.

Filed under: Bitcoin - @ February 15, 2024 6:16 am