The recent bearish market turmoil has dampened the previously high levels of bullish remarks and euphoria surrounding Bitcoin’s price, which could indicate a potential market bottom.
Data from crypto analytics firm Santiment shows that bullish Bitcoin (BTC) remarks across social media platforms such as X, Reddit, Telegram, 4Chan and BitcoinTalk have dropped significantly over the past few weeks.
BTC’s price has been trading sideways since the Bitcoin halving in April.
Bitcoin social media sentiment indicates market bottom
Santiment data indicates that trader sentiment was most bullish at the beginning of April in the lead-up to the Bitcoin halving.
However, over the past three months, optimism has gradually waned as traders have lost confidence in the markets due to Bitcoin’s failure to reach new all-time highs.
On the other hand, the bearish crowd calls have also declined over the same time period, but not as drastically as the bullish crowd calls. Santiment said the decline in trader euphoria around Bitcoin is a potential bottom signal.
Related: Biden-Trump debate: Crypto goes completely unmentioned
A bottom signal indicates an impending market trend reversal. When an asset is undervalued or trading at its lowest point, investors frequently view a bottom as an opportunity to buy it. From a technical analysis point of view, the lowest level of support for the asset is referred to as the bottom.
Bitcoin hit a new all-time high on March 14, reaching a price of $73,780 on Coinbase. Since then, the top cryptocurrency has traded in a range between $60,000 and $70,000 and momentarily dropped below the $60,000 mark before regaining key support. BTC is currently trading at $61,500.
Bitcoin post-halving consolidation longest in 2024
Historically, every four-year halving cycle has resulted in a new all-time high for Bitcoin after the halving event. The price of Bitcoin typically begins to rise about a month before the halving, driven by the anticipation of increased scarcity.
However, the price does not surge immediately after the halving. Instead, it usually enters a sideways movement or consolidation phase before experiencing a bullish breakout.
Bitcoin analyst Willy Woo noted that the BTC price will recover after “weak miners die and hashrate recovers.” He added that in 2017, the hashrate recovery took 24 days, while in 2021, it took only eight days. In 2024, the recovery has already taken 61 days.
Another popular Bitcoin analyst, Rekt Capital, said that Bitcoin continues to consolidate in the post-halving reaccumulation range. The upper resistance level of the range is approximately $71,500, while the lower support level is around $60,600, which is the current price of BTC.
Magazine: Get Bitcoin or die tryin’: Why hip hop stars love crypto