Santiment Warns Bitcoin ATH Unlikely if Market Sentiment Remains High

Bitcoin is unlikely to reach a new all-time high in the near future due to current market sentiment, according to onchain analytics platform Santiment.

Santiment reported today that expectations for a new Bitcoin peak may be premature, stating that “markets historically always move in the opposite direction of the crowd’s expectations.” The platform noted that for every bearish post, there were 1.8 bullish ones, suggesting that the market may be overly optimistic at this time.

📊 If you're awaiting Bitcoin's new all-time high, it may need to wait until the crowd slows down their own expectations. There are currently 1.8 bullish posts toward BTC for every 1 bearish post. Markets historically always move the opposite direction of crowd's expectations. pic.twitter.com/ZxDxalgmzb
— Santiment (@santimentfeed) September 29, 2024

Bitcoin prices have steadily risen in recent weeks, gaining 14% from below $58,000 on September 17 to over $66,000 on September 28. Bitcoin is set to record its best-ever September in terms of gains, with a 12% increase. Jameson Lopp, chief security officer at Casa, also commented on the changing narrative around Bitcoin in the media. “Bitcoin sentiment is shifting positively in mainstream media as FUD fails to withstand the test of time,” Lopp posted on X on September 29.

The Bitcoin Fear and Greed Index, which tracks market sentiment, has moved into “greed” territory, scoring 61 as of today. However, this marks a significant shift from earlier in the month when the index fell to 22, indicating “extreme fear” on September 6, one of the lowest levels seen in the past year.

Bitcoin Fear and Greed Index is 61 ~ Greed
Current price: $65,653 pic.twitter.com/9lOs3K4iWr
— Bitcoin Fear and Greed Index (@BitcoinFear) September 30, 2024

Chinese Stablecoin Demand and Price Volatility

Despite the growing bullish sentiment, the market still has bearish indicators. Last Saturday, the demand for stablecoins in China had turned bearish. When stablecoins, which are pegged to the U.S. dollar, trade at a discount rather than a premium in China, it is seen as a sign of negative market sentiment. This trend could be a factor in delaying a new Bitcoin all-time high.

Bitcoin is trading at $63,816 at the time of writing, according to Coinmarketcap— approximately 12.6% below its March all-time high of $73,734. Furthermore, early trading today saw Bitcoin prices fall by nearly 2% over a six-hour period.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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