Knowledge Exhibits Overconfidence in Bitcoin's Rise to $70,000 Spells Warning for Huge Correction

• Bitcoin jumped to $66,480, a two-month excessive, boosting the altcoin market.
• Market members are concentrating on Bitcoin to succeed in the $70,000 stage quickly.
  
• Santiment warns that overwhelming bullish sentiment may result in a worth correction relatively than a brand new all-time excessive.

Bitcoin began a bull run within the crypto market two weeks in the past and has since reached as excessive as $66,480. This worth was final seen in July. Bitcoin hitting a two-month excessive boosted the broader altcoin market. Many different crypto belongings additionally hit highs final seen three months in the past.

Accordingly, market analysts predict that Bitcoin may head in the direction of the long-lost $70,000 mark, probably setting a brand new all-time excessive above $73,000. Nevertheless, information platform Santiment discovered motive to warn that an all-time excessive is probably not doable for Bitcoin within the close to time period.

Bitcoin's all-time excessive could stay elusive

In an evaluation revealed earlier at this time, Santiment famous that whereas ready for a brand new all-time excessive for Bitcoin, the market could mood its expectations. The evaluation highlighted that there are at the moment 1.8 bullish posts in opposition to BTC for each 1 bearish publish. Particularly, optimistic commentary on Bitcoin is at a one-year excessive after Bitcoin rose 22% in three weeks.

This implies that the temper of the gang is extraordinarily bullish, with many anticipating costs to rise additional. Nevertheless, this will likely not bode nicely for an uptrend. Santiment identified that markets traditionally transfer in the other way than the crowds anticipated.

Which means that whereas many are hoping for the $70,000 stage within the close to time period, a bearish reversal may happen that may see Bitcoin reverse all latest features earlier than rebounding greater.

Historic precedent

For instance, in February, Santiment revealed that there’s notable bearish sentiment in the direction of large-cap crypto belongings corresponding to Bitcoin, ETH, and BNB. All of them skilled negativity above their historic averages for the primary time in additional than six months at the moment.

Santiment then famous that widespread concern usually indicators a possible market rebound, as markets have a tendency to maneuver in opposition to prevailing sentiment, stunning brief merchants. Certainly, there was a restoration, and Bitcoin reached an all-time excessive of $73,750 simply 4 weeks later. Ethereum adopted an analogous path, reaching excessive worth ranges final seen in 2021.

The continued bull run is already beginning to lose steam as Bitcoin stalled at $65,500, evident from BTC's 0.41% loss posted within the final 24 hours.