Crypto market sentiment not as bullish as ‘echo chamber’ suggests, trader says

As a seasoned researcher with over two decades of market analysis under my belt, I have learned to read between the lines and not be swayed by the noise of the crowd. The recent surge in Bitcoin’s price has undeniably sparked a shift in sentiment among traders, but I remain cautiously optimistic.


The approaching price of Bitcoin (BTC) at around $70,000 is causing a change in investor attitudes, as optimistic forecasts increase among traders. Yet, one trader cautions that the market hasn’t fully reached its bullish potential and still needs to progress further before it can be confidently labeled as such.

Matthew Hyland, an independent cryptocurrency analyst, expressed a somewhat pessimistic viewpoint on October 18, stating that he doesn’t find the overall mood overly optimistic at present.

Crypto market is an ‘echo chamber’

He suggested that those in the crypto industry can have a volatile mindset toward sentiment, however, a shift in market sentiment also requires an increase in retail investor interest.

Hyland stated that this environment often reinforces opinions, making it simple to believe sentiments are always the same; however, the broader world actually paid significantly less focus on Cryptocurrencies in 2021 than what is commonly perceived here.

During the week of October 12, 2024, according to CryptoMoon’s findings, searches on Google for the term “Bitcoin” hit their lowest point in a year.

Crypto market sentiment not as bullish as 'echo chamber' suggests, trader says

As a researcher, I’m sharing an insight based on Hyland’s argument: It appears that the total number of market participants in the current year is roughly 10% of what it was in 2021. By 2024, this number is predicted to increase, but still only be around half of what it was earlier.

Currently, the Crypto Fear and Greed Index, a tool that measures investor sentiment towards Bitcoin and the wider cryptocurrency market, indicates that investors are feeling optimistic or bullish about the crypto market.

The Index is reading a “Greed” score of 72, up 23 points from its “Neutral” score on Oct. 12 49.

Bullish posts from crypto traders

Since October 12th, the value of Bitcoin has risen by approximately 9.37%, and many well-known traders are expressing optimistic views about its future pricing in their posts featuring charts.

In his October 19 post on Reddit, Michael van de Poppe, the founder of MN Trading Capital, expressed a bullish outlook on Bitcoin, stating that the chart indicates a particularly positive trend.

Crypto market sentiment not as bullish as 'echo chamber' suggests, trader says

In a recent post on October 18, Glassnode lead analyst James Check posed the question, “Is there any price chart as optimistic for potential growth as that of Bitcoin at this moment?

A rise in optimistic crypto posts among community members might suggest a growing positive sentiment, but a data analysis company cautions that excessive excitement could potentially trigger a market flip.

By September 30th, the on-chain analytics platform Santiment indicated that people expecting a fresh record high for Bitcoin might need to be patient until the excitement among the crowd subsides a bit and they adjust their expectations accordingly.

It looked into social sentiment data, noting that there are currently 1.8 bullish posts about Bitcoin for every bearish post. 

According to Santiment, markets tend to go against the common expectation of the crowd.

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2024-10-19 08:54