The narrative encompassing Bitcoin remains relatively consistent, with its price maintaining a range-bound pattern in the previous week. Despite the halving event, which led to a substantial decrease in mining rewards, both Bitcoin and the broader market have displayed a persistent lack of momentum.
There was widespread anticipation that the halving event would ignite a fresh wave of optimism for Bitcoin’s price. However, instead of a surge, there is a growing sense of dissatisfaction among investors due to the sluggish market conditions, prompting calls for a Bitcoin sell-off.
Rise in Recommendations to Sell Bitcoin: Insights from Blockchain Firm
A recent report from Santiment, a blockchain analytics company, highlights an increasing trend of investors advocating for Bitcoin sales on social media platforms following its recent decline to $63,000. The focal point of analysis is the “social volume,” which tracks the volume of unique posts and discussions on various social channels referencing a specific topic.
By consolidating data concerning “buy or bullish” and “sell or bearish” sentiments revolving around the primary cryptocurrency in the past week, Santiment observed a significant shift in sentiment. The data reveals a surge in bearish sentiments overshadowing the positive discussions on social media platforms.
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Santiment’s findings indicate that the recent price drop of Bitcoin to \(63,000 coincided with the lowest levels of positive sentiment since April 21st (just before Bitcoin’s recovery above \)67,000). The data illustrates a notable increase in social mentions related to “sell” subsequent to the price decline.
Typically, an uptick in bearish sentiment towards Bitcoin indicates a rise in fear, uncertainty, and doubt (FUD) among investors. However, heightened impatience and frustration among traders often precede market rebounds.
Influence of Over 90% Profitable Bitcoin Holdings on Price Trends
Recent on-chain data suggests that around 90% of circulating Bitcoin is presently in a profitable state. This statistic implies that the majority of current Bitcoin holders acquired the cryptocurrency at a lower price than its current valuation.
Nonetheless, such elevated levels of profitability can also indicate an overbought market, especially after prolonged bullish periods like the one observed from October 2023 to March 2024. Consequently, investors should be prepared for potential price corrections in the upcoming weeks.
Currently, Bitcoin is valued at $63,077, reflecting a 2% decrease in value over the last 24 hours.