Bitcoin (BTC) positive sentiment receding – stand by for big move

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As an experienced market analyst, I’ve seen my fair share of market cycles and sentiment shifts. The current state of social media activity and investor sentiment towards Bitcoin is certainly cause for concern, but it’s important to remember that past performance is not always indicative of future results.

The sentiment towards Bitcoin on social media reached its minimum in 2024, with fear becoming increasingly prevalent among crypto investors. Could this indicate an imminent significant price shift for Bitcoin?

Social activity and positive sentiment diminishing

Currently, Bitcoin is putting up a fight to remain above the $61,000 mark as its support. The optimistic buzz on social media and throughout the crypto sphere is minimal, leading some to ponder if this could signal an impending significant decline for Bitcoin.

⚠️#Bitcoin social activity is at the lowest point in all of 2024.

— LunarCrush (@LunarCrush) May 8, 2024

Based on the data I’ve analyzed from LunarCrush, I’ve noticed a substantial decrease in bitcoin-related social media activity during the first half of this year. There was a notable surge when Spot Bitcoin ETFs were launched, and a few smaller spikes since then. However, overall, the level of conversation around bitcoin on various social media platforms has dropped considerably.

In the crypto market, there’s a growing sense of apprehension among investors as Bitcoin keeps setting successively lower peaks and troughs since reaching its record high in mid-March.

Is a big dip coming?

Could the current Bitcoin bull market have peaked already, implying its continuance is uncertain? While it’s essential to remain open-minded about market trends, historical patterns suggest a more prolonged cycle.

Could the price drop further?

Affirmatively, a drop in price as deep as $51,000 for Bitcoin (BTC) would not disrupt its overall uptrend. Quite possibly, such a dip might serve as a beneficial correction that could extend the duration of this bull market and ultimately propel BTC’s value to new heights.

$BTC still in a bull market

As a researcher studying Bitcoin’s ($BTC) price action on a daily timeframe, I observe that the battle between resistance and support persists around the $61,000 mark. The more often a support line is tested, the higher the likelihood of it being breached. Nevertheless, an emerging downward trendline since April 8th adds complexity to this situation, potentially offering additional support at this price level.

As a crypto investor, I’ve observed that the bearish sentiment surrounding bitcoin seems quite intense lately. However, if we consider that we might still be in the bull market, and no significant resistance levels have been breached yet, then it’s possible that a rebound could occur soon. The market history suggests that such a bounce tends to happen when sentiment is at its worst.

Environment for bitcoin should improve towards end of year

As a crypto investor, I’m keeping a close eye on the economic landscape for the remainder of this year. Two significant factors could potentially supercharge the value of risk assets like Bitcoin. Firstly, if economic conditions worsen further, it’s likely that the Federal Reserve will be compelled to reduce interest rates. This monetary easing could provide a substantial boost to Bitcoin and other risk assets.

The excessive liquidity in the market could significantly boost Bitcoin, contributing to its continued rise towards greater heights during its bull run. This upward trend may peak around 2025.

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2024-05-09 16:08