Bitcoin bulls seek gas on $63.5K support line 

Santiment data indicates that there has been an “extended level of FUD” (fear, uncertainty, and doubt) surrounding Bitcoin (BTC) on the social media site X. The extended period of fear and skepticism among traders. Santiment wrote on June 20 on X, “This extended level of FUD is rare, as traders continue to capitulate.” 

Over the previous week, the price of bitcoin has varied, reaching highs of $67,294 and lows of $63.5K. Bitcoin bulls seek gas at $63.6K support line. The Weighted Sentiment Index, a measure of Bitcoin mentions on X and the proportion of favorable to negative comments has been negative since May 23 according to Santiment. As of the time of publication, the score is -0.738, which suggests that social media users’ opinions about Bitcoin are primarily unfavorable. 

 

Even still, there has been a bias in the flow of Bitcoin options posted on the major exchanges toward call options at levels (strikes) well above the going market rate of the cryptocurrency. An indication that astute investors believe the current price slump will pave the way for a longer-term rally. 

Recent weeks have seen a decoupling of Bitcoin from the Nasdaq’s ascent, primarily because miners and long-term holders sold their holdings and increasing discourse on the non-directional nature of ETF inflows. The German government transferred $425 million worth of Bitcoin to another cryptocurrency on Thursday, most likely with the goal of selling. 

Favorable developments for Bitcoin, such as halving on April 20 and the approval of 11 spot exchange-traded funds on January 10, have historically caused favorable sentiment to soar to 2.35 and 4.49, respectively. 

Current Sentiment: The attitude among analysts and prominent traders is still pessimistic despite these past gains in the Bitcoin market, with many voicing fear or indifference. “Since the halving, Bitcoin has been in a sideways slog for about 150 days,” wrote Glassnode lead analyst James Check, also known as “Checkmatey,” in a post on X on June 19.  

Outlook 

The prolonged period of consolidation could lead to a large price increase. “In general, a longer consolidation leads to a larger expansion afterward,” said anonymous cryptocurrency trader Daan Crypto Trades. 

-Fear and Greed Index: Concurrently, another attitude indicator, the Fear and Greed Index, displays a score of 63 for Greed, indicating a minor decrease of 11 points over the previous seven days. This measure takes into account several variables, such as market momentum, volatility, and social media mood. 

Even with all of the FUD and negativity currently consuming social media conversations, market watchers believe that the extended period of consolidation may indicate that a big upside surge may be imminent. 

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ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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