After surpassing the significant milestone of $66,000, sparking enthusiasm within the cryptocurrency community and instilling hope for a forthcoming bull run, Bitcoin (BTC) encountered a bearish trend.
Based on the most recent data from CoinMarketCap, BTC was valued at $64,519, following a 1.65% decline over the past 24 hours.
This sudden downward movement has subdued the confidence of numerous investors, casting a shadow of uncertainty over the future trajectory of the primary cryptocurrency.
Bitcoin’s Bearish Turn
Observing the bearish divergence, the on-chain analytics platform Santiment shared its insights on X (previously known as Twitter) on September 29th, stating,
“To witness Bitcoin’s new all-time high, it might be necessary to wait until the crowd moderates their expectations.”
In its recent communication, Santiment highlighted that there are currently around “1.8 optimistic messages regarding BTC for every 1 pessimistic message,” indicating sustained positivity amidst recent market downturns.
This sentiment was reaffirmed by Jameson Lopp, Casa’s Chief Security Officer, who remarked,
“The mainstream media is increasingly adopting a positive stance on Bitcoin as FUD struggles to endure over time.”
Nevertheless, drawing comparisons to past trends, Santiment added,
“Market movements typically oppose the crowd’s anticipations.”
Do Technical Indicators Tell a Different Story?
While debates suggest that Bitcoin might take time to achieve a fresh all-time high, technical indicators present a more nuanced perspective.
As an illustration, the Relative Strength Index (RSI) is currently positioned above the neutral level at 59, reflecting a bullish outlook.
However, it is important to note that the RSI has been on a downward trajectory since September 29th, hinting at a probable trend reversal.
This cautious view is further corroborated by the Bollinger Bands, which have expanded, indicating escalated volatility and potential shifts in market sentiment.
Nonetheless, the community remains optimistic, as highlighted by a user on X–Crypto Rover, who expressed,
“The #Bitcoin bull market commences now!”