Bitcoin, the premier cryptocurrency, has been experiencing sluggishness in its price movement post the halving event. Despite the anticipation of a bullish trend following the halving, investors are becoming increasingly frustrated with the stagnant market activity. Social media posts and messages are reflecting a growing impatience among investors, with many calling for a dump of BTC.
Analysis of On-Chain Data
According to a recent report by on-chain analytics firm Santiment, the social volume indicator for Bitcoin has been tilting towards bearish sentiment. Following a drop in Bitcoin’s price to $63,000, the number of buy and bullish calls on social media hit their lowest point since April 21st. This shift in sentiment is evident from the increased mentions of terms related to selling Bitcoin, indicating a rise in fear, uncertainty, and doubt among investors.
Interestingly, when bearish sentiment peaks and investors start showing signs of frustration, it often serves as a contrarian indicator for a potential market rebound. The fact that around 90% of Bitcoin in supply is currently in profit indicates that most holders bought the cryptocurrency at a lower price and are now in a profitable position. However, this level of profitability can also signal an overbought market, especially after extended bullish periods.
As Bitcoin currently hovers around $63,077, reflecting a 2% price decline in the past 24 hours, investors are eyeing the next few weeks for potential price movements. Given the current sentiment and on-chain data, there is a possibility that Bitcoin could shed some of its recent price gains in the coming weeks. It is essential for investors to conduct their own research and exercise caution while making investment decisions in such a volatile market.
Despite the anticipation surrounding the halving event, Bitcoin’s price remains stagnant, leading to frustration among investors. The shift towards bearish sentiment on social media and the high level of profitability for current Bitcoin holders indicate a potential market correction in the near future. It is crucial for investors to stay informed, conduct thorough research, and be prepared for price fluctuations in the cryptocurrency market.