Blockchain Analytics Platform Santiment said cryptocurrency traders are becoming increasingly optimistic about social media due to the opportunity of Bitcoin to recover $110,000, but the surge in optimism does not always bode well.
“It’s obvious that the crowd is starting to salivate,” Santiment analyst Brian Quinlivan told Cointelegraph.
Comments that bullish Bitcoin surge to three-week highs
santiment data shows that every bearish comment for Bitcoin (BTC) There are now 1.51 bullish comments – the highest emotional ratio in the last three weeks. Data is extracted from multiple platforms such as X, Reddit, Telegram, 4chan, BitCointalk, and Farcaster.
Quinlivan warned that the rise in sentiment in Quinlivan seems to be positive, but on June 11 and July 7, similar spikes of optimism among traders were also affected by Bitcoin price declines.
“It is well known that as retail loses money forever from excessive emotional decisions, prices move in the opposite direction the crowd expects,” he said.
Quinlivan pointed to trading activity on Monday, with bullish comments rising with Bitcoin reaching its highest level of $109,595 before quickly reclaiming to $107,681.
“We’re seeing clear signs of rising momentum in the retail industry buying Bitcoin prices,” he said.
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Quinlivan believes Bitcoin may see a “moderate pullback” before reaching its all-time high of $111,970 on May 22. At the time of publication, Bitcoin reached $108,791 on May 22, up 2.84% over the past 7 days and 2.84% over the past 7 days. according to Used to share market cap data.
Quinlivan also noted that Bitcoin Whale Wallet (which holds 10 to 10,000 BTC) shows little recent activity, indicating caution in the market.
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“These wallets are a bit suspicious at the moment,” said Quinlivan, adding that the whales sold 14,140 BTC in the past week.
“When they accumulate, prices usually get in close contact. When they dump or even temporarily stop accumulating, it usually indicates that the market value of the entire cryptocurrency may drop.”
However, he stressed that the long-term trend remains bullish, pointing out that whales and sharks have accumulated steadily for six months.
Macro headwinds ahead
Javier Rodriguez-Alarcon, chief commercial officer of digital asset trading company XBTO, told Cointelegraph that several upcoming events could test the resilience of the entire cryptocurrency market in the coming weeks.
While his earlier concerns about the U.S. tariff deadline tied to U.S. President Donald Trump has been delayed until August 1, Rodriguez-Alarcon highlighted other macroeconomic factors that could still affect the price trajectory of Bitcoin.
He said Wednesday’s release of minutes from the Fed’s setting committee could impact the wider cryptocurrency market and “create a huge headwind for major risk assets.”
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This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
