The past week has seen Bitcoin’s price remain stagnant, trapped in a consolidation range that has left investors frustrated. Despite the recent halving event, which was expected to spark a new wave of bullish activity, the premier cryptocurrency has failed to gain momentum. Instead, investors have taken to social media to voice their concerns, with many calling for the sale of BTC.
Recent data from on-chain analytics firm Santiment reveals a shift in sentiment among investors, with bearish calls outnumbering bullish sentiments on social media. Specifically, the “social volume” indicator, which tracks the number of posts and messages mentioning a specific topic, has shown a significant increase in mentions related to selling Bitcoin.
According to Santiment’s analysis, the recent drop in Bitcoin’s price to $63,000 saw the lowest level of buy and bullish calls since April 21st. This surge in bearish mentions typically indicates a rise in fear, uncertainty, and doubt (FUD) among investors. However, it may also signal an impending market rebound, as increased frustration and impatience often precede a shift in sentiment.
On-chain data suggests that around 90% of Bitcoin in circulation is currently in profit, indicating that the majority of holders bought their coins at a lower price. While this might seem like a positive sign, it could also be interpreted as an overbought signal, particularly after a prolonged bullish period. The period between October 2023 and March 2024 saw significant price gains for Bitcoin, and the current level of profitability may lead to a correction in the coming weeks.
At the time of writing, Bitcoin is trading at $63,077, reflecting a 2% decline in price over the past 24 hours. This downward trend is evident in the daily chart, which shows a gradual decline in price towards the $63,000 mark.
Despite the optimism surrounding the halving event, Bitcoin’s price has failed to break out of its consolidation range, leading to frustration among investors. The increase in bearish sentiment on social media, coupled with high profitability levels for existing holders, suggests that a market correction may be imminent. As always, it is essential for investors to conduct their own research and make informed decisions when dealing with volatile assets like Bitcoin.
