After reaching an all-time high of $73,737 in mid-March, Bitcoin has been unable to maintain itself at a high level of activity and strength. In fact, the leading cryptocurrency entered a new era with the halving event in April, but its price performance in the past weeks has not yet reflected this.
However, Bitcoin enjoyed a stroke of luck last week, as its price rose above $67,000 for the first time in nearly a month. Although sentiment around the cryptocurrency market and its leader has not been particularly encouraging in the past few weeks, the recent bullish surge appears to be leading to a shift in this regard.
Can bullish sentiment push BTC price to $70,000?
According to another a report By on-chain analytics firm Santiment, the sentiment of the cryptocurrency crowd has shifted towards Bitcoin following its recent surge above $67,000. This disclosure is based on a weighted sentiment metric, which measures overall positive or negative sentiment toward a cryptocurrency.
This indicator is based on two subscales: It is the degree of emotions and social size. The Sentiment Score metric checks whether an audience is negative or positive about an asset, while Social Volume tracks the total amount of discussion about an asset on social media.
Weighted sentiment is a product of both sentiment score and social size. A significant change in scale occurs when social volume is high and there is a clear average of sentiment (either positive or negative).
Source: Santiment/X
According to Santiment, Bitcoin's sentiment-weighted sentiment recently reached its highest bullish level since January, due to the recent price surge. The last time sentiment around the leading cryptocurrency was this high was after the SEC approved bitcoin ETFs in the US.
Interestingly, Bitcoin is not the only top 20 cryptocurrency with positive sentiment at the moment. Sentiment data shows that the Chainlink token (LINK), which saw its value rise nearly 20% in the past week, is seeing its most bullish sentiment in over a year.
While bullish sentiment is not necessarily a bad sign, FOMO (fear of missing out) can easily arise as a result, often leading to price collapses. Santiment noted in its post that “staying low FOMO” is necessary for a sustained rise in Bitcoin prices and a potential move to $70,000.
Bitcoin price at a glance
As of this writing, Bitcoin is worth $66,924, reflecting a 2.3% increase in the past day. Notably, the leading cryptocurrency rose by 10% on the weekly time frame.
Bitcoin price hovers around $67,000 on the daily timeframe | Source: BTCUSDT chart from TradingView
Featured image from iStock, chart from TradingView