Greed

bullish

Bitcoin

when

Over the past two to three days, positive sentiment across the Bitcoin market suddenly surged to a level not seen in more than a year. While this may seem like a bullish sign, analysts have warned that it is concerning.
According to a<a href="https://x.com/santimentfeed/status/1834334388357923332" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow"> tweet</a> by the market intelligence platform Santiment, the sudden optimism from the crypto community has increased positive Bitcoin comments on social media so much that they are now more than double the number of negative ones for the first time in a year.
<h2 id="positive-bitcoin-comments-suddenly-rises">Positive Bitcoin Comments Suddenly Rises</h2>
The high positive commentary has also driven the fear of missing out (FOMO) to more intense levels where crypto prices usually experience brief surges.
Santiment said bitcoin (BTC) would start testing its March all-time high levels when traders and the crypto community start slowing down and expressing fear, uncertainty, and doubt (FUD) again. Until then, the market would remain risky and highly volatile.
The market intelligence firm also noted that the sudden optimism began about three days ago. Before that, the market was saturated with negative sentiment and speculations about BTC plunging further to the $40,000-$45,000 levels.
Blockchain analytics firm IntoTheBlock <a href="https://cryptopotato.com/does-the-current-market-condition-mirror-2019-intotheblock-offers-insights/" data-wpel-link="internal" rel="noopener noreferrer nofollow">revealed</a> at the time that BTC had no significant bullish momentum and that investor interest was fading. The challenging macroeconomic conditions and slowing crypto adoption raised questions about the market being at the onset of a bear phase or a quiet period during this bull run.
In fact, CryptoQuant’s Bull-Bear Market Cycle indicator has <a href="https://cryptoquant.com/community/dashboard/657c44ae53cdc86cfe1808cf" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">been</a> in the bear phase since August 27, suggesting that BTC faces the risk of further correction in the near term.
<h2 id="investor-behavior-still-fearful">Investor Behavior Still Fearful</h2>
While market sentiment hovers between the positive and negative, the Crypto Fear and Greed Index shows that investors are predominantly in the fear zone. Data from Alternative.me <a href="https://alternative.me/crypto/fear-and-greed-index/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">shows</a> the index is at 32, which <a href="https://cryptopotato.com/can-1-3b-bitcoin-options-expiry-shift-market-sentiment-on-sept-13/" data-wpel-link="internal" rel="noopener noreferrer nofollow">indicates</a> fear. Last week, the value was 22, revealing extreme fear.
The Fear and Greed index determines investor behavior by considering several factors, including social media, volatility, market momentum, and trends. The index postulates that investors tend to get greedy when the market is surging and become fearful and sell their assets when it is in a downward trend.
The post <a href="https://cryptopotato.com/positive-bitcoin-sentiment-surges-to-yearly-highs-heres-why-thats-bad-for-btc/" rel="noopener noreferrer nofollow">Positive Bitcoin Sentiment Surges to Yearly Highs: Here’s Why That’s Bad for BTC</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Positive Bitcoin Sentiment Surges to Yearly Highs: Here’s Why That’s Bad for BTC

Table of Contents

CryptoPotato_News

Other articles published on Sep 13, 2024

Examining Potential Bitcoin Value Decline to $31K: What to Watch Out For

MicroStrategy has acquired 18,300 more Bitcoin for $1.11 billion, bringing its total holdings to ...

What is SNAXchain by Synthetix?

Is the DOGE Story Ending in 2024, or Is a Big Rally Coming?

Coinbase Analyst Attributes Ethereum’s Underperformance to Market Factors and Calls for New Catalyst

Angel Drainer Resurfaces: New Phishing Toolkit AngelX Deploys 300+ Malicious dApps

Join our free newsletter for daily crypto updates!