Bitcoin Bullish Sentiment Dwindles, Indicating Potential Bottom

Bitcoin Bullish Sentiment Dwindles, Indicating Potential Bottom

The recent bearish market turmoil has dampened the once soaring bullish sentiment surrounding Bitcoin price, hinting at a potential market bottom.

According to data from crypto analytics firm Santiment, bullish Bitcoin mentions across social media platforms such as X, Reddit, Telegram, 4Chan, and BitcoinTalk have plummeted significantly in recent weeks.

Since the Bitcoin halving in April, BTC’s price has been trading sideways. Santiment’s data reveals that trader sentiment was at its peak at the beginning of April, leading up to the halving event. However, over the past three months, optimism has steadily declined as traders have lost confidence in the market due to Bitcoin’s inability to achieve new all-time highs.

Conversely, the increase in bearish sentiment could indicate a potential market bottom. Santiment suggests that the drop in trader euphoria around Bitcoin may signal an impending bottom, which in market terms, often precedes a trend reversal. When an asset is perceived as undervalued or trading at its lowest point, investors typically see it as a buying opportunity. From a technical analysis perspective, the asset’s lowest level of support is referred to as the bottom.

Bitcoin reached a new all-time high on March 14, hitting $73,780 on Coinbase. Since then, it has fluctuated between $60,000 and $70,000, briefly dipping below $60,000 before regaining crucial support. Currently, BTC is trading at $61,500.

The post-halving consolidation period in 2024 is the longest on record. Historically, each four-year halving cycle has led to a new all-time high for Bitcoin following the halving event. The price usually starts to climb about a month before the halving, driven by the anticipation of increased scarcity. However, it does not surge immediately post-halving, often entering a phase of sideways movement or consolidation before experiencing a bullish breakout.

Bitcoin analyst Willy Woo noted that the BTC price will recover after “weak miners die and hashrate recovers.” He pointed out that in 2017, hashrate recovery took 24 days, while in 2021, it took only eight days. In 2024, the recovery has already taken 61 days.

Another prominent Bitcoin analyst, Rekt Capital, commented that Bitcoin continues to consolidate within the post-halving reaccumulation range. The upper resistance level of this range is approximately $71,500, while the lower support level is around $60,600, aligning with the current price of BTC.