Bitcoin’s (BTC) price nearing $70,000 has sparked a shift in market sentiment, with a surge in bullish posts among traders. However, one trader warns that the market isn’t quite there yet and still has a way to go before it can truly be called bullish.
“I don’t think the sentiment is that bullish currently,” independent crypto analyst Matthew Hyland opined in an Oct. 18 X post.
Crypto market is an ‘echo chamber’
He suggested that those in the crypto industry can have a volatile mindset toward sentiment, however, a shift in market sentiment also requires an increase in retail investor interest.
“This place is an echo chamber, so it’s easy to be convinced sentiment is one way or the other; in reality, the outside world has given a fraction of the attention they gave Crypto in 2021,” Hyland added.
Cointelegraph recently reported that Google search volumes for the term “Bitcoin” reached a one-year low during the week of Oct. 12, 2024.
Hyland argued that the total number of current market participants are approximately 10% of what they were in 2021 and around 50% of “what it was earlier” in 2024.
Meanwhile, the Crypto Fear and Greed Index, which represents current “emotions and sentiments” toward Bitcoin and the broader crypto market, signals bullish territory for crypto among market participants.
The Index is reading a “Greed” score of 72, up 23 points from its “Neutral” score on Oct. 12 49.
Bullish posts from crypto traders
Bitcoin has increased in price by 9.37% since Oct. 12, and prominent traders have also been echoing a bullish sentiment on price chart posts.
MN Trading Capital founder Michael van de Poppe declared in an Oct. 19 X post that “this is a significantly bullish chart for Bitcoin.”
Glassnode lead analyst James Check asked in an Oct. 18 X post “Is there a more bullish looking price chart than Bitcoin on the planet right now?”
While an increase in the number of bullish posts from the crypto community can also indicate an increase in sentiment, an analytics firm warned that too much frothiness can lead to a market reversal.
Related: Bitcoin traders stress ‘bullish’ market while BTC price threatens $60K
On Sept. 30, onchain analytics platform Santiment said those anticipating a new Bitcoin all-time high may need to wait until the crowd “slows down their own expectations.”
It looked into social sentiment data, noting that there are currently 1.8 bullish posts about Bitcoin for every bearish post.
“Markets historically always move in the opposite direction of the crowd’s expectations,” Santiment stated.
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