Bearish Sentiments Hint at Bitcoin’s Potential Bottom

The level of bullish sentiment on X, Reddit, Telegram, 4Chan, and BitcoinTalk has significantly declined, with traders losing confidence in the markets, which could be seen as a factor indicating a local bottom, according to Santiment. 

? The level of bullish calls across X, Reddit, Telegram, 4Chan, and BitcoinTalk has dropped significantly as traders have lost confidence in markets. Bearish calls have slipped, but much less rapidly. We interpret this as crowd fear and indifference, a potential bottom signal. pic.twitter.com/9R2VwPciwQ

— Santiment (@santimentfeed) June 28, 2024

“Bearish calls have slipped, but quite slowly. We interpret this as crowd fear and indifference—a potential bottom signal,” analysts noted.

According to experts, in April, ahead of the halving, traders’ sentiment was most optimistic. However, over the past three months, the bullish narrative has weakened due to bitcoin’s inability to reach a new all-time high (ATH). 

Bearish calls also declined slowly, indicating a waning market interest. Meanwhile, discussions about holding cryptocurrency slightly increased, Santiment’s data shows. 

Historically, each four-year halving cycle led to a new ATH for the leading cryptocurrency. However, the price did not rise immediately after the miners’ reward was halved, but only several months later. During this period, the market remained in a “sideways” phase. 

A Different Market Perspective

Analyst Willy Woo noted an increased frequency of speculation around digital gold. 

Nice to see some of the speculation getting purged the last few days.

Still a bit heavy, still too much speculation.

Bears still in control, but #Bitcoin got so oversold in the liquidations that it’s really hard to go lower without an uptick. pic.twitter.com/EJeqmaLe0Z

— Willy Woo (@woonomic) June 26, 2024

“Bears still control the situation, but bitcoin is so oversold during the [recent] liquidation that it’s really hard to go lower without a rise,” he noted. 

In his view, a “reversal is playing out,” and the “hidden bearish divergence is still in force and not yet invalidated.” The analyst also emphasized that breaking the RSI resistance line on bitcoin’s daily chart will create a “technical, not fundamental recovery.”

A break of this RSI trendline will create a technical recovery.

Note I said technical, not fundamental.

The markets would correct for overselling, doesn’t mean fundamental BTC demand and supply warrants further bullish action. pic.twitter.com/vwwkAPcid5

— Willy Woo (@woonomic) June 26, 2024

“Markets will correct for overselling, but this does not mean that the fundamental demand and supply of the leading cryptocurrency guarantee further bullish actions,” Woo warned. 

He also anticipates an increase in bitcoin network hash rate, which is a key indicator of miners ceasing sales to upgrade equipment. 

This would likely be the case for #Bitcoin.

Preferably we sweep the $60K area where a bullish divergence kicks in.

Reversal coming from next week with the impending Ethereum ETF listing. pic.twitter.com/f3RlCzW2gv

— Michaël van de Poppe (@CryptoMichNL) June 27, 2024

Analyst and MN Trading founder Michaël van de Poppe suggested that bitcoin will dip into the $60,000 zone, where bullish dominance begins. According to his forecasts, a reversal will occur “next week with the upcoming Ethereum ETF listing.”

At the time of writing, the leading cryptocurrency is trading around $61,400, having decreased by 4.5% over the week. 

On June 24, bitcoin fell below the $60,000 level following a statement from the trustee of the collapsed Mt.Gox exchange about plans to begin compensation payments in July.

Analyst On-Chain Collage reported that the Mayer Multiple indicator reached an eight-month low, providing a “healthy reset” of bullish sentiment and indicating a potential bitcoin bottom. 

Earlier, CryptoQuant noted signs of a potential local minimum for the leading cryptocurrency after a 15% correction and subsequent rebound from $60,000. 

Several experts observed a bullish sentiment in the crypto derivatives market. As of June 28, when weekly, monthly, and quarterly bitcoin options positions expire, the put/call ratio stands at 0.51, indicating trader optimism.