Investors awaiting a possible continuation of Bitcoin’s (BTC) rally to reclaim the $70,000 level may have to wait longer as overall market sentiment is not entirely bullish.
Specifically, according to data provided by Alex Becker, investor interest in Bitcoin is declining, with search volumes reflecting levels lower than those seen during the most challenging bear markets.
Analysis of search trends shows that while the crypto community is feeling an increase in bullish sentiment, the broader market remains largely uninterested. Looking at metrics like YouTube and Google search data, interest in the cryptocurrency remains at levels Becker called “worse than a bear market.”
“It may seem that everyone is too optimistic right now. You need to retreat. On YT and Google, interest in the cryptocurrency is still at lows “worse than a bear market,” he said.
The data showed that search volume has fallen from its peak in 2020, when it peaked at a search interest score of 100, to just 17, showing the extent of investor disinterest.
Becker emphasized that approximately 85% of retail trading has left the market, meaning that most investors are bearish and have completely given up on tracking cryptocurrency trends. He added that for Bitcoin and the broader crypto space to regain significant popularity, current online activity would need to increase by at least 3.5 times.
Additionally, Becker suggested that this division means that while a vocal minority remains bullish, the majority are bearish, rendering Bitcoin and other cryptocurrencies irrelevant.
Bitcoin hits all-time high, we’ll have to wait longer
Sentiment surrounding the digital asset also hints at what’s to come for Bitcoin based on market interest, as evidenced by data provided by the cryptanalysis platform. sentiment in the X-post of September 29.
The platform admitted that Bitcoin has witnessed a 22% rise in value, raising optimism for a possible continuation. However, this wave of bullish sentiment may prove counterproductive to the imminent all-time high that some market participants are expecting.
Positive commentary on Bitcoin is currently at its highest level in a year, with 1.8 bullish posts for every bearish post, according to the data. This mix of bullish and bearish sentiment reflects the crowd’s enthusiasm for a rapid rise, perhaps to the $70,000 level.
How sentiment Historical experience has shown that markets often move contrary to what most people expect. When overly positive sentiment occurs, it can signal a potential pullback or stagnation.
Excessive optimism can lead to lower demand or profit-taking by large investors, causing short-term downward pressure. While long-term fundamentals are strong, the market may need time to digest the gains and reset before the next push higher.
Bitcoin remains in the “greed” zone
The current overconfidence in the market is also visible in the Crypto Fear and Greed Index, which is currently in the “greed” zone with a score of 63. This sentiment highlights growing investor confidence, which is a significant shift from the cautious or mixed sentiment of recent months.
The Fear and Greed Index, which ranges between extreme fear and extreme greed on a scale of 0 to 100, provides insight into whether market participants are overly optimistic or bearish.
However, high levels of greed can sometimes indicate an overbought condition and a potential market correction, as prices may be driven by emotional exuberance rather than fundamentals.
Alan Santana’s analysis confirms possible bearish sentiment. The expert noted that investors should expect a potential correction when Bitcoin forms a “significant low” in the coming months. Thus, if Bitcoin continues to trade below the $71,000 mark, the cryptocurrency will likely fall further as this level signals sustained bearish sentiment.
However, the market analyst CyclesFanIn a September 29 post, X dissented, noting that Bitcoin is destined to hit an all-time high in the fourth quarter of 2024. The expert noted that after a five-month correction, Bitcoin’s price action is signaling a potential breakout to a new level. temporary maximum by the fourth quarter of 2024.
The correction phase, which ended in August when Bitcoin touched its 12-month moving average, reflects a similar market structure seen before the peak of the 2021 bull market.
If history repeats itself, investors expect Bitcoin to rise in tandem with Uptober’s momentum, when the asset tends to perform better in October. Due to this, some analysts claim that if Bitcoin clears $68,000, it could lay claim to the all-time high of $100,000.
Bitcoin Price Analysis
At press time, Bitcoin was trading at $65,570 with daily losses of about 0.3%. On the weekly chart, BTC is up almost 5%.
Overall, although Bitcoin has seen a surge and growing bullish sentiment lately, its path to returning to the $70,000 level may face challenges. The first issue investors need to keep an eye on is the cryptocurrency’s ability to maintain its price above $65,000.
