The expected rise of Bitcoin toward the $70,000 price mark has slowed, influenced by a surge in social media chatter.
According to data from Santiment, Bitcoin was on a promising trajectory but hit a roadblock after a spike in bullish sentiment from the crowd earlier this week. The sentiment-driven rally encountered resistance as market dynamics responded to the increased chatter about Bitcoin potentially reaching $70,000.
The data from Santiment indicates that social media mentions of Bitcoin in the $50K to $59K range have frequently correlated with market bottoms. Conversely, mentions in the $70K to $79K range have often coincided with market tops.
These patterns suggest an inverse relationship between public sentiment and Bitcoin’s price movements. Notably, the rise in mentions predicting a $70K Bitcoin occurred as prices peaked above $67,000. Santiment warns that crowd-driven expectations may be at odds with actual price trends.
image from Santiment
Historical Bitcoin Price Moves and Market Behavior
Santiment’s data highlights the fluctuating nature of Bitcoin’s market behavior concerning social media activity. Mentions of Bitcoin prices in the $50K range tend to increase during periods of bearish sentiment, while mentions of the $70K range spike when optimism is high.
This relationship underscores the influence of crowd behavior, as the market often moves in the opposite direction of prevailing social media sentiment.
In late September, Bitcoin’s price surged above $67,000, triggering heightened bullish calls within the community. However, by mid-October, when Bitcoin tested the $60,000 level, it sparked renewed discussions about potential further price drops.
Now that Bitcoin is surging above $67K and teasing a run for higher levels, the crowd’s bullish sentiment is becoming overheated again, suggesting an impending correction.
Bitcoin’s Resilience Amid Political Neutrality
In a related development, BlackRock CEO Larry Fink recently stated that neither Donald Trump nor Kamala Harris would significantly impact Bitcoin’s long-term trajectory. He noted that Bitcoin has become an asset class of its own, akin to gold, and its uptrend would be independent of regulation or who the next U.S. president is.