Overconfidence in Bitcoin’s Rally to $70K Spells Warning for Huge Correction, Information Exhibits

• Bitcoin has surged to $66,480, marking a two-month excessive and boosting the altcoin market.
• Market members are concentrating on Bitcoin to achieve the $70K stage quickly.
  
• Santiment warns that overwhelming bullish sentiment may result in a value correction slightly than a brand new all-time excessive.

Bitcoin commenced a bull run within the crypto market two weeks in the past and has since reached as excessive as $66,480. This value level was final seen in July. Bitcoin’s achievement of a two-month excessive has boosted the broader altcoin market. Many different crypto property have additionally reclaimed excessive factors final seen three months in the past.

Accordingly, market analysts are projecting that Bitcoin may very well be headed for the long-lost $70K vary, probably setting a brand new all-time excessive past $73K. Nevertheless, intelligence platform Santiment has discovered grounds to warn that an all-time excessive is probably not possible for Bitcoin within the close to time period.

Bitcoin All-time Excessive Could Stay Elusive 

In an evaluation posted early immediately, Santiment remarked that whereas ready for Bitcoin’s new all-time excessive, the market might have to mood its expectations. The evaluation confused that there are at the moment 1.8 bullish posts towards BTC for each 1 bearish publish. Particularly, constructive commentary towards Bitcoin is at a yearly excessive following Bitcoin rallying by 22% in three weeks.

This implies crowd sentiment is extraordinarily bullish, with many anticipating additional value good points. Nevertheless, this is probably not an excellent signal for an uptrend. Santiment highlighted that markets traditionally transfer in the other way of the group’s expectations.

This means that whereas many are looking forward to the $70K stage within the close to time period, a bearish flip may happen, main Bitcoin to reverse all current good points earlier than rebounding greater.

Historic Precendent 

For example, again in February, Santiment disclosed that there was notable bearish sentiment towards large-cap crypto property like Bitcoin, ETH, and BNB. All of them skilled negativity past their historic averages for the primary time in over six months at the moment.

Santiment famous then that widespread concern typically alerts a possible market bounce, as markets have a tendency to maneuver in opposition to prevailing sentiment, shocking brief merchants. Certainly, the rebound got here, and Bitcoin reached an all-time excessive of $73,750 simply 4 weeks later. Ethereum adopted an identical path, reaching excessive value ranges final seen in 2021.

Already, the continued bull run is starting to lose steam as Bitcoin stalls across the $65,500 stage, evident within the 0.41% loss BTC posted within the final 24 hours.