Bitcoin prices plunged last week, gaining positive momentum as the ongoing conflict situation in the Middle East improved. On Friday, April 17, the leading cryptocurrency surged to around $77,500, hitting a 10-week high on the day. Despite the upward price movement, on-chain data shows that investor sentiment has not increased commensurately.
Could Bearish Investor Sentiment Mean a Continued BTC Rally?
Santiment said in a recent post on social media platform Contrary to popular expectations, the recent bullish price action has not triggered a wave of FOMO (fear of missing out) sentiment among investors.
According to data from Santiment, there are currently two bearish comments for every two bullish comments about the world’s largest cryptocurrency. The on-chain analytics firm noted that retail investors are showing signs of fatigue related to ongoing geopolitical tensions and ongoing ceasefires.
Related Read: Stocks are at All-Time Highs, Bitcoin Is Lagging: Is BTC Too Late for the Rally?
Santiment wrote to X:
So despite the weekend rallies surrounding Trump’s recently announced ceasefire, retail appears to be ignoring any news.
What’s interesting is that this FUD (fear, uncertainty, doubt) and not-so-optimistic investor sentiment seems to be good news for the Bitcoin price. In general, rallies tend to be short-lived whenever investor sentiment heats up, which is consistent with the market theory that prices move in the opposite direction of the crowd.
As Santiment noted in his post on However, the flagship cryptocurrency could surge beyond this expected high, as it has often done in the past.
Source: @santimentfeed on X
“This is also a good sign that the rally could surge above $90,000, just past the expected outcome of smaller traders. Markets almost always move against public expectations, so don’t follow the herd,” the blockchain intelligence firm said.
However, Santiment warned that new developments could emerge, meaning the Bitcoin price trajectory could change in an instant. From new developments in Middle East tensions to whether the Clarity Act proposal will reach US President Donald Trump’s desk, here are several factors to watch out for in the coming weeks.
Bitcoin price at a glance
As of this writing, the BTC price is around $77,381, up 3% in the last 24 hours.
Featured image from iStock, chart from TradingView
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