Key Points
- Bitcoin’s market sentiment is extremely bullish, but caution is advised due to potential counter-movements.
- Notable crypto analyst Rekt Capital predicts Bitcoin’s breakout, while its price continues to rise.
Bitcoin’s steady price growth has led to an extremely bullish market sentiment.
However, recent data from on-chain analytics platform Santiment indicates that this optimism might be overblown.
Market Sentiment and Counter Movements
On September 30, Santiment reported that the market sentiment around Bitcoin is at its most bullish point in months.
The firm also warned that this could work against expectations of Bitcoin reaching new all-time highs.
Santiment’s analysis showed that for every bearish post about Bitcoin, there are 1.8 bullish posts.
While this optimism might usually be seen as a positive indicator, markets often move in the opposite direction to the crowd’s expectations.
However, some in the crypto community have disagreed with this assessment.
They argue that the market doesn’t always behave opposite to public sentiment, especially during strong bull runs.
Analyst Predicts Bitcoin’s Breakout
Rekt Capital, a well-known crypto analyst, recently suggested that Bitcoin could be nearing the end of its reaccumulation phase.
According to him, Bitcoin has crossed the 160-day threshold since the last halving event, which often marks the start of significant upward price movement.
In a recent YouTube video, Rekt Capital stated that we might see some sideways price action this week before an upward motion.
He said, “If things continue on this path, we could see a breakout in the next week or two. Bitcoin is poised for a move to new all-time highs, and it’s just a matter of when, not if.”
Bitcoin’s Price Action
This bullish outlook comes amid Bitcoin’s recent price gains.
Since mid-September, Bitcoin has risen by around 14%, moving from below $58,000 to over $66,000 in about 10 days.
This rise has made September Bitcoin’s strongest month in terms of performance since its inception, with a monthly rise of around 12%.
The Bitcoin Fear and Greed Index, which measures market sentiment, showed a rating of 61 as of September 30, placing it in the “greed” territory.
Despite its recent climb, Bitcoin is trading around $64,350, about 13% below its all-time high of $73,734 set in March.
Early trading on Monday saw Bitcoin drop by 1.7% over the previous 24 hours.
