Bitcoin crowd sentiment hit multi-month high as BTC price touches $21K

Bitcoin (BTC) worth climbed to a four-month excessive above $21,000 within the third week of January, relishing dealer’s hope. The market has seen probably the most substantial investor optimism since July because of the January BTC worth rebound.

Based on information shared by crypto analytic agency Santiment, the buying and selling crowd sentiment has touched its highest in six months and second highest bullish sentiment prior to now 14 months. The information signifies that merchants are treating Bitcoin’s worth rebound as a sign of a potential larger breakout within the close to future.

The time period “crowd/investor sentiment” describes how traders typically really feel a couple of particular asset or monetary market. It refers back to the temper or tenor of a market, or the psychology of its members, as expressed by exercise and adjustments within the worth of the asset exchanged in that market.

The chart above reveals three main spikes in investor sentiment since 2021. The primary main spike in sentiment got here in November 2021, adopted by the BTC worth surge to a brand new all-time excessive of $68,789. The second main spike got here in July 2022 amid hints by Fed about potential inflation ease, adopted by a minor worth surge. Whereas the value rise post-spike in crowd sentiments in July final 12 months wasn’t very vital attributable to market-wide bearish sentiment, merchants did purchase the dip at $19,000.

Associated: Bitcoin worth rally over $21Okay prompts analysts to discover the place BTC worth may go subsequent

The newest spike in crowd sentiment got here after a chronic winter in 2022. Market analysts consider the BTC worth rebound might be an indication of a market backside. Based on impartial market analyst HornHairs, the time from backside to prime and prime to backside has remained fixed since 2015 at 152 weeks and 52 weeks, respectively.

$BTC #Bitcoin
2015-2017 bull market: 1064 days
2017-2018 bear market: 364 days

2018-2021 bull market: 1064 days
2021-*present* market low: 364 days

Days left till the highest if we simply carbon copy the cycle timeframe once more: 1001 days pic.twitter.com/KoNZxJRuy5

— HornHairs (@CryptoHornHairs) January 12, 2023

The run-up to the highest and backside of the prior cycles look surprisingly comparable when inspecting the long-term worth behaviour of Bitcoin. What’s extra intriguing is that the cycle for 2020–2021 seems to be following an identical development.