The post Santiment Warns Bitcoin Top Likely in, but FUD Could Spark Renewed Bull Run Quickly appeared on BitcoinEthereumNews.com.

Market intelligence platform Santiment has recently reiterated its observations on the crowd’s sentiment towards Bitcoin, warning of an unexpected market turn.  According to its analysis, the market is overly bullish, and this optimism points to a potential market top, a trend often followed by corrections in the cryptocurrency market. Monday’s market retrace has already triggered some panic selling, which forced Bitcoin from $65,634 to close at $63,329. Amid this pullback, Santiment suggests that if fear of missing out (FOMO) shifts to fear, uncertainty, and doubt (FUD), the market’s bullish trend could quickly resume, bringing more volatility into the scene. Crowd Sentiment Signals Potential Correction For context, Santiment’s data from Friday shows that Bitcoin traders have been increasingly confident following a significant 22% price surge over the past three weeks. Their sentiment ratio, which tracks the balance between bullish and bearish posts about Bitcoin, revealed a noticeable rise in optimism. Specifically, the platform highlighted that there were 1.8 bullish posts for every bearish post on Bitcoin, indicating that traders have grown more confident in the market. However, Santiment warns that markets tend to move in the opposite direction of crowd expectations. This suggests that this bullish outlook may precede a potential market shift. This growing confidence is reflected in Santiment’s sentiment ratio chart, which shows how quickly positive sentiment took hold after Bitcoin’s price spike. The chart indicates that traders’ optimism has reached its highest level of the year, but history suggests that overly bullish sentiment often precedes corrections.  Bitcoin Holders’ Behavior Suggests Market Still Bullish Adding to Santiment’s observations, recent exchange inflow data indicates stability in Bitcoin holdings. In an X post, Ki Young Ju, CEO of CryptoQuant, emphasized that Bitcoin inflows into exchange wallets are normal compared to previous bear market periods. Inflows on major exchanges like Binance and…

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Filed under: News - @ October 1, 2024 11:28 am