Bitcoins diminishing social sentiment could indicate the markets reaching a low point

The recent downturn in the bearish market has subdued the previously exuberant sentiment and optimistic comments revolving around Bitcoin’s price, hinting at a potential market bottom.
Insights from crypto analytics company Santiment reveal a significant decline in positive Bitcoin (BTC) discussions on various social media platforms like X, Reddit, Telegram, 4Chan, and BitcoinTalk in recent weeks.
Ever since the Bitcoin halving in April, BTC’s price has been trading horizontally, showing no major fluctuations.
An illustration depicting Bitcoin’s social media sentiment, sourced from Santiment, suggests a potential market bottom.
According to Santiment’s data, trader sentiment reached its peak optimism at the start of April leading up to the Bitcoin halving. Nevertheless, confidence has steadily dwindled over the last three months as traders have become less hopeful about Bitcoin reaching new record highs.
Despite a decrease in bearish sentiments within the same timeframe, it’s not as sharp as the decline in bullish sentiment. Santiment indicates that the diminishing trader enthusiasm surrounding Bitcoin might signal a potential market bottom.
A market bottom signal implies an imminent reversal in market trends. Investors often see a bottom as an opportunity to purchase undervalued assets or assets at their lowest prices. Technically, the lowest level of support for an asset is known as the bottom.
Coinbase witnessed Bitcoin achieving a new all-time high on March 14 at $73,780. Subsequently, the primary cryptocurrency has traded between $60,000 and $70,000, briefly dipping below $60,000 before securing crucial support. Currently, BTC is trading at $61,500.
In the year 2024, post-halving consolidation for Bitcoin is the longest it has been historically. Following every four-year halving cycle, Bitcoin has typically seen a new all-time high post the halving event. Usually, the Bitcoin price starts climbing about a month before the halving due to the expectation of increased scarcity.
However, the price surge does not occur immediately after the halving. Instead, it usually undergoes a consolidation phase or sideways movement before a bullish breakout.
Renowned Bitcoin analyst Willy Woo pointed out that the Bitcoin price will bounce back after “weak miners exit and hashrate rebounds.” He mentioned that in 2017, the hashrate recovery took 24 days, which reduced to only eight days in 2021. In 2024, the recovery has extended to 61 days.
An image depicting the timeframe for Bitcoin hashrate recovery, sourced from Glassnode, provides insights into the recovery process.
Another popular Bitcoin analyst, Rekt Capital, stated that Bitcoin is still consolidating within the post-halving reaccumulation range. The upper resistance level of this range stands near $71,500, while the lower support level is currently around $60,600, which aligns with the current BTC price.
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