Bitcoin
What’s Next for Bitcoin (BTC) Prices? Bulls Could See Relief as “Negative Sentiment” Reaches All-Time Highs
Bitcoins (BTC) The slow bleed over the past few weeks accelerated on Friday, the price fell more than 3% in the last 24 hours to fall to a five-week low of $63,700, now lower by 9% over the past month.
Contrarian bulls, however, can take comfort as indicators tracked by analytics firm Santiment show that crowd sentiment towards BTC is now in its fourth week of an “extremely negative” reading.
“The crowd is mostly scared or disinterested in Bitcoin,” the company said in an X post on Friday. “This extended level of FUD is rare as traders continue to capitulate,” they added. “BTC trader fatigue combined with whale accumulation often leads to patient-rewarding bounces.”
Santiment’s Weighted Sentiment Index measures bitcoin mentions at X and compares the ratio of positive and negative comments and trading volumes to gauge how the crowd generally feels about bitcoin. The index, which read -0.73 on Friday, has been negative since May 23.
Elsewhere, Google Trends data shows a decline in retail search interest. The tool allows users to compare relative search volume. A downward trending line means that a search term’s popularity relative to other popular terms is decreasing. Worldwide searches for “bitcoin” have been falling steadily since March 2024, data show.
BTC prices have generally suffered in recent weeks amid $1 billion selling by large holders, dollar strength and a strong U.S. technology index market that may be drawing money from investors.
Outflow activity from US-listed bitcoin exchange-traded funds (ETFs) also hit its worst since late April, with US$900 million leaving the products so far this week. These numbers are close to 1.2 billion dollars in total net outflows in the trading sessions from April 24th to May 2nd.
Some traders expect bitcoin to reach the $60,000 level in the near term due to a lack of growth catalysts, although the long-term outlook remains optimistic as previously reported.