Bitcoin peak on hold as market sentiment remains high
The crypto market often moves in the opposite direction of crowd expectations.
Key Takeaways
Bullish posts outnumber bearish ones 1.8 to 1 in Bitcoin discussions.
The Crypto Fear and Greed Index rose to 61, indicating a market shift to greed.
Bitcoin might not reach a new record high anytime soon since market sentiment remains overly optimistic, suggested Santiment in a recent post on X.
âIf youâre awaiting Bitcoinâs new all-time high, it may need to wait until the crowd slows down their own expectations,â Santiment stated.
The ratio of bullish to bearish posts on Bitcoin currently stands at 1.8 to 1, which Santiment explained indicates an excessive level of market enthusiasm.
However, historically, the market tends to âmove in the opposite direction of the crowdâs expectations.â This means that Bitcoin could enter a correction amid the high level of bullishness.
The flagship crypto may end September in green despite starting the month on a low note. BTC dipped below $53,500 during the first week of the month but has since spiked over 10% to $64,000. The surge was indeed unexpected since September was historically tied to a downward trend.
A major factor that sent Bitcoinâs price soaring toward the end of this month is the adjustment in US and Chinese monetary policies.
On September 19, the Fed made its first interest rate cut in 4 years. An aggressive 50-basis-point reduction pushed Bitcoin above $63,000, up 6% following the decision.
Last week, China joined the Fed with a pandemic-level stimulus package, which would see approximately $140 billion injected into its economy. The move is expected to create a favorable macro environment that could drive Bitcoin to new all-time highs, similar to previous actions that led to over 100% increases in Bitcoinâs price.
Bitcoin broke through the $66,000 level, marking its best September ever in history. However, bullish momentum is weakening as the market enters a new week.
