Bitcoin crowd sentiment hit multi-month high as BTC price touches $21K

Bitcoin (BTC) price climbed to a four-month high above $21,000 in the third week of January, relishing trader’s hope. The market has seen the most substantial investor optimism since July due to the January BTC price rebound.

According to data shared by crypto analytic firm Santiment, the trading crowd sentiment has touched its highest in six months and second highest bullish sentiment in the past 14 months. The data indicates that traders are treating Bitcoin’s price rebound as a signal of a possible bigger breakout in the near future.

The term “crowd/investor sentiment” describes how investors generally feel about a specific asset or financial market. It refers to the mood or tenor of a market, or the psychology of its participants, as expressed by activity and changes in the price of the asset exchanged in that market.

Bitcoin weighted social sentiment Source: Santiment

The chart above shows three major spikes in investor sentiment since 2021. The first major spike in sentiment came in November 2021, followed by the BTC price surge to a new all-time high of $68,789. The second major spike came in July 2022 amid hints by Fed about possible inflation ease, followed by a minor price surge. While the price rise post-spike in crowd sentiments in July last year wasn’t very significant due to market-wide bearish sentiment, traders did buy the dip at $19,000.

Related: Bitcoin price rally over $21K prompts analysts to explore where BTC price might go next

The latest spike in crowd sentiment came after a prolonged winter in 2022. Market analysts believe the BTC price rebound could be a sign of a market bottom. According to independent market analyst HornHairs, the time from bottom to top and top to bottom has remained constant since 2015 at 152 weeks and 52 weeks, respectively.

The run-up to the top and bottom of the prior cycles look surprisingly similar when examining the long-term price behaviour of Bitcoin. What’s more intriguing is that the cycle for 2020-2021 appears to be following a similar trend.

All Dutch and English crypto news!

Sri Lanka against Bitcoin adoption, rejects Draper’s anti-corruption pitch

On a recent visit to Sri Lanka, American billionaire Tim Draper pitched the idea of adopting Bitcoin (BTC) as a legal tender to fight against...

Dit zijn alle cryptobedrijven die zijn omgevallen… tot nu toe

Februari is voor cryptobegrippen rustig begonnen, er zijn (nog) geen faillissementen aangekondigd. Dat is fijn, zeker na zo'n turbulente periode waarin crypto exchanges, leenbedrijven en...

YouTuber baits MMA fighter into secretly shilling fake NFTs for $1K

Coffeezilla, a YouTuber and crypto investigator, revealed that American mixed martial artist Dillon Danis promoted a fake NFT project without disclosing that he received $1,000...

Little Shapes was a ‘social experiment’ to expose NFT botnets: founder

Atto, the pseudonymous founder behind Little Shapes NFT has revealed that the project was actually a "social experiment" designed to shed light on large-scale NFT...

Beste exchanges

Koop je crypto bij Bitvavo