The recent market downturn has subdued the previously enthusiastic sentiment surrounding Bitcoin’s price, suggesting a possible market bottom. Santiment, a crypto analytics firm, has observed a significant decrease in bullish remarks about Bitcoin on social media platforms such as X, Reddit, Telegram, 4Chan, and BitcoinTalk in recent weeks. Since the Bitcoin halving in April, the price of BTC has been trading sideways. Santiment’s data indicates that trader sentiment was most bullish in early April, leading up to the halving. However, optimism has gradually declined over the past three months as traders have lost confidence in the market’s ability to reach new all-time highs. Conversely, bearish sentiment has also decreased during this time period, albeit not as drastically as bullish sentiment. Santiment suggests that the decline in trader euphoria could signal a market bottom. A market bottom indicates a potential reversal in trend. Investors often view a bottom as an opportunity to buy an undervalued asset at its lowest point. From a technical analysis perspective, the bottom refers to the asset’s lowest level of support. Bitcoin reached an all-time high of $73,780 on March 14 but has since traded within a range of $60,000 to $70,000. It briefly dropped below $60,000 before reclaiming key support. Currently, BTC is trading at $61,500. The consolidation period following a halving event is typically the longest in the four-year cycle. Historically, each halving has led to a new all-time high for Bitcoin, but the price usually enters a sideways movement or consolidation phase before experiencing a bullish breakout. Bitcoin analyst Willy Woo believes that the BTC price will recover once weak miners exit the market and the hashrate recovers. In the past, hashrate recovery took 24 days in 2017 and only eight days in 2021. However, in 2024, it has already taken 61 days. Another prominent Bitcoin analyst, Rekt Capital, suggests that Bitcoin is currently consolidating within the post-halving reaccumulation range. The upper resistance level of the range is around $71,500, while the lower support level is approximately $60,600, which aligns with the current price of BTC.
Declining social sentiment towards Bitcoin could indicate a potential market bottom