According to CryptoPotato, cryptocurrency investors have been displaying high levels of fear and uncertainty towards Bitcoin (BTC) over the past month. This unusual period of negativity, as reported by on-chain data analysis firm Santiment, could indicate a potential buying opportunity for those who can withstand the market's inherent volatility. Despite the potential for a price increase, the market is currently experiencing 'bitcoin trader fatigue' with prices fluctuating between $65,000 and $66,000. This marks an unusual fourth consecutive week of fear, uncertainty, and doubt (FUD).
Santiment's data shows an extreme level of negativity in crowd sentiment towards BTC, which is rare as traders continue to sell off their holdings. Amid this FUD, bitcoin whales are accumulating BTC rapidly in anticipation of a market rebound. This negative sentiment, coupled with the accumulation by whales, typically leads to a market correction where bitcoin’s price rebounds strongly, benefiting patient investors.
In addition, bitcoin’s price trajectory might soon benefit from favorable macroeconomic conditions in the United States. Financial commentator Tedtalksmacro, known for tracking the correlation between BTC price action and U.S. Federal Reserve liquidity, predicts a positive shift in the coming days. The BTC price has closely mirrored Fed liquidity conditions for several months, and with liquidity expected to bottom out and surge higher within the next ten days, bitcoin could see a corresponding rise. This analysis shows a consistent pattern where bitcoin price highs and lows align with peaks and lows in Fed liquidity. Notably, bitcoin’s latest all-time high of $73,800 in mid-March coincided with a liquidity spike.