Is Bitcoin still experiencing bullish sentiment despite the recent price dip?
- Bitcoin’s price faced a bearish downturn after surpassing $66,000, raising market uncertainty. Technical indicators suggested bullish sentiment, but potential trend reversal looms with rising volatility.
After surging past the $66,000 milestone, sparking excitement across the crypto community, and fueling hopes for an imminent bull run, Bitcoin [BTC] found itself under a bearish cloud.
According to the latest data from CoinMarketCap, BTC was trading at $64,519, after a 1.65% dip in the last 24 hours.
This sudden downturn has tempered the optimism of many investors, leaving the market uncertain about what lies ahead for the leading cryptocurrency.
Bitcoin turns bearish
Noticing the bearish divergence, on-chain analytics platform Santiment shared its insights on X (formerly Twitter) on the 29th of September and noted,
“If you’re awaiting Bitcoin’s new all-time high, it may need to wait until the crowd slows down their own expectations.”
Source: Santiment/X
In its latest post, Santiment emphasized that there are now approximately “1.8 bullish posts toward BTC for every 1 bearish post”, reflecting the ongoing optimism despite recent market downturns.
This was further confirmed by Jameson Lopp, Chief Security Officer at Casa, who said,
“Bitcoin sentiment is shifting positively in mainstream media as FUD fails to withstand the test of time.”
Source: Jameson Lopp/X
However, drawing a parallel to past performance, Santiment added,
“Markets historically always move the opposite direction of crowd’s expectations.”
Are technical indicators painting a different picture?
While discussions suggest that Bitcoin may take time to reach a new all-time high, technical indicators paint a more nuanced picture.
For instance, the Relative Strength Index (RSI) currently sits above the neutral zone at 59, reflecting a bullish sentiment.
However, it’s worth noting that the RSI has been trending downward since the 29th of September, signaling a potential trend reversal.
This cautious outlook is further supported by the Bollinger Bands, which have widened, indicating increased volatility and possible shifts in market sentiment.
Source: Trading View
However, the community still looks positive as noted by an X user — Crypto Rover who said,
“The #Bitcoin bull market starts here!”
Source: Crypto Rover/X
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