Home CryptocurrencyBitcoin The mood of the bitcoin crowd hit a multi-month high as the price of BTC hit $21k

The mood of the bitcoin crowd hit a multi-month high as the price of BTC hit $21k

by SuperiorInvest

Bitcoin (BTC) climbed to a four-month high above $21,000 in the third week of January, brightening the trader’s hopes. The market saw the most significant investor optimism since July due to the BTC price rally in January.

According to Sentiment among trading audiences hit a six-month high and the second-highest bullish sentiment in 14 months, according to data from crypto analytics firm Santiment. The data suggests that traders view the rebound in Bitcoin’s price as a signal of a possible bigger breakout in the near future.

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

Bitcoin Weighted Social Sentiment Source: Santiment

The chart above shows the three major spikes in investor sentiment since 2021. The first big spike in sentiment came in November 2021, followed by a surge in the price of BTC to a new all-time high of $68,789. The second big increase came in July 2022 amid indications from the United States Federal Reserve that inflation might moderate, followed by a smaller increase in prices. While the price rally following the July 2022 surge in crowd sentiment was not very significant due to market-wide bearish sentiment, traders bought the dip at $19,000.

Related: Bitcoin price rally above $21,000 prompts analysts to examine where BTC price could go next

The last spike in crowd sentiment came after the long winter of 2022. Market analysts believe that BTC prices could rebound they mean the bottom of the market. According to independent market analyst HornHairs, the bottom-up and top-down times have remained constant since 2015 at 152 weeks and 52 weeks, respectively.

The run-up to the start and end of previous cycles look surprisingly similar when examining Bitcoin’s long-term price behavior. More interestingly, the 2020 to 2021 cycle seems to be following a similar trend.

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