The price of Bitcoin has been on a tear in the past week, drawing positive momentum from the improving conditions of the ongoing conflict in the Middle East. On Friday, April 17, the premier cryptocurrency surged to around $77,500, reaching a new 10-week high on the day. Despite the heating price action, on-chain data suggests that there has not been a commensurate increase in investor sentiment.
Bearish Investor Sentiment Could Mean Continued BTC Rally?
In a recent post on the social media platform X, Santiment revealed that the Bitcoin market sentiment is still at an extreme low after the latest run-up toward the $77,500 level. Contrary to general expectations, the latest spurt of bullish price action did not trigger 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 remarks about the world’s largest cryptocurrency. The on-chain analytics firm mentioned that retail investors are showing signs of fatigue related to the ongoing geopolitical tensions and continued ceasefire developments.
Related Reading: Stocks Are At All-Time Highs, Bitcoin Is Lagging: Is BTC Late To The Rally?
Santiment wrote on X:
So even though there is an end-of-week rally related to Trump’s latest announced ceasefire, retail appears to be taken any news with a grain of salt.
What’s interesting is that this FUD (fear, uncertainty, and doubt) and not-so-bullish investor sentiment seems to spell good news for the Bitcoin price. Typically, rallies tend to be short-lived whenever investor sentiment overheats, aligning with the market theory that prices move in the opposite direction of the crowd.
As Santiment noted in its post on X, most traders are skeptical about the continued rally of the Bitcoin price, with many confidently expecting an $84,000 top (at the very best). However, the flagship cryptocurrency could surge past this expected top, as it has often done in the past.
Source: @santimentfeed on X
“This also is a good sign that a rally can shoot right past the small traders’ expected outcomes, and potentially surge to $90K+; Markets nearly always move opposite to the crowd’s expectations, so avoid following the herd,” the blockchain intelligence firm said.
Santiment, however, warned that new developments can emerge, meaning that the Bitcoin price trajectory could change in a heartbeat. From fresh developments in the Middle East tensions to whether the Clarity Act proposal reaches US President Donald Trump’s desk, there are several factors to watch out for over the coming weeks.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $77,381, reflecting 3% increase in the past 24 hours.
Featured image from iStock, chart from TradingView
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