Bitcoin’s bullish sentiment in ‘serious decline’

July 18, 2024 at 9:22 pm

Edited by Jayson Derrick

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Bitcoin’s bullish sentiment in ‘serious decline’

Bitcoin’s positive sentiment has witnessed a “serious decline,” according to analysts at market intelligence platform Santiment.

On Thursday, as Bitcoin (BTC) struggled to reclaim its recent upward trajectory, Santiment shared that funding rates suggest a surge in bearish bets.

“Positive commentary toward Bitcoin has plummeted despite the mid-sized crypto market bounce this week. Many traders, particularly on Binance, are opening shorts with the expectation of BTC dropping again,” the platform wrote.

Bullish commentary on Bitcoin price has fallen to about a third of the rate seen four months ago. Data also shows traders are increasingly betting against BTC rising in the short term.

📊 Positive commentary toward Bitcoin has plummeted despite the mid-sized crypto market bounce this week. Many traders, particularly on @binance, are opening shorts with the expectation of BTC dropping again. Both of these factors increase the likelihood of cryptocurrency rising. pic.twitter.com/50Z1TvJpUx
— Santiment (@santimentfeed) July 18, 2024

Bitcoin holders pull BTC from exchanges

Bitcoin’s surge to $66,000 earlier this week has given way to a decline to around $63,380. Price is down just over 2.5% in the past 24 hours, which notably, is what Bitfinex analysts said was likely to happen as highlighted in our previous coverage.

While positive sentiment has declined and traders are increasing short positions, Santiment suggests these factors “increase the likelihood of cryptocurrency rising.”

Crypto analyst Woo Minkyu noted in a post on X on Thursday, Bitcoin holders have recently pulled huge amounts from exchanges. It happened on July 5 as BTC crashed below $54,000 – a scenario that coincided with the massive sell-off pressure from the German government and initial BTC transfers by Mt. Gox.

At the time, holders withdrew BTC worth $3.8 billion from exchanges and helped prices to jump from around $56,000 to above $65,000.

This week, on July 16, Bitcoin holders again descended on exchanges, withdrawing another $3.4 billion worth of BTC. Shorts were caught offguard after this, although the flagship cryptocurrency has again dipped in the past 24 hours amid fresh Mt. Gox-driven sentiment.

While prices are off week highs, this movement of BTC from exchanges suggests holders are planning to hodl, which has often positively affected price.