Santiment’s sentiment platform says that nearly half the mentions of crypto on social media were related to Bitcoin this week as it reached new heights. The dominance of Bitcoin may be a sign of a temporary top, and could also indicate a pullback in short term.
“As Bitcoin’s market value crept above $123.1K for the first time in its 17+ year history, there was an equally historic social dominance spike,” Santiment analyst Brian Quinlivan said In a Wednesday report.
Bitcoin price drops due to a surge in Bitcoin discussion
“43.06% of all crypto discussions were about $BTC just as the coin’s market value was peaking,” Quinlivan said. Quinlivan stated that “the sudden spike was indicative of many retail traders FOMO’ing in,” The view of several industry players who think that retail investors are yet to enter the marketplace is challenged.
On July 11, Bitwise head of research André Dragosch said, Bitcoin (BTCRetail is still struggling to keep up with the booming economy. “almost nowhere to be found.”
On Monday, just three days later, Bitcoin reached an all-time high of $123,100 On Binance before the retracement to $117.011 when published, according Nansen Data
Quinlivan stated that, while it may appear that sentiment is rising in the social media about Bitcoin, historically speaking spikes are usually followed by a price drop.
“Wait for the euphoria to cool down some, and you’ll likely find another key entry point coming up,” “He said”
Quinlivan recently warned that a similar surge in investor optimism was possible were followed by Bitcoin price drops Both June 11th, and July 7, 2019.
Bitcoin is expected to continue its rise, according to analysts
Nevertheless, analysts claim that this upward trend will likely continue.
On Wednesday, CryptoQuant analyst Axel Adler Jr It was noted that the Bitcoin signal had not appeared, which is an indicator of overheating. “we’re not at a peak yet.”
Related: Bitcoin resistance at $120K hints at consolidation before impulse rally to $135K
Galaxy Digital’s Head of franchise trading, Michael HarveyBitcoin may be heading for a short consolidation period after the recent rise to all-time records, but that doesn’t mean another surge before the end July is out of the question.
“Consolidation around current prices is my base case given the large rally and new ATH,” Harvey tells Cointelegraph.
Magazine: XLM’s price to rocket like XRP, Trump’s big crypto nod: Hodler’s Digest, July 13 – 19
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Source: cointelegraph.com
