Just now, the Bitcoin market has broken above the crucial resistance of $67,400. Many predicted that if the market climbed above the said level, it would take the market to new highs. Naturally, confidence in the market has reached a new high. However, a report by Santiment suggests that the upward momentum of the market has slowed down despite this growing optimism. Why? To know, let’s analyze the Santiment report in detail. Ready?Â
Bitcoin Rally Hits a Pause: Why?
The report points to a burst of bullish sentiment in the Bitcoin market on Tuesday. Its primary view is that the newly gained hype has slowed the pace of the present upward momentum in the market. On Monday, the opening price was $65,853. By the time of closing, it rose to $66,079. Yesterday, it could not maintain the same momentum, although by the time of closing the price reached $67,066. Currently, the price stands at $67,522.Â
Data Shows Bottoms and Top FormingÂ
The Santiment data reveals an interesting pattern: bottoms are forming in the $50K – $59K range based on high social media mentions, while tops are appearing in the $70K – $79K range. What this suggests is that prices may fluctuate based on public sentiment, with higher mentions indicating potential tops.
Market Moves Opposite to Crowd PredictionsÂ
Santiment states that markets tend to move in the opposite direction of crowd predictions. What this means is that when the crowd expects prices to rise or fall, the opposite often happens.Â
In conclusion, the Santiment report highlights the importance of staying away from the ‘Crowd Think’ trap. It emphasizes indirectly the significance of developing an independent mindset for traders.Â
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