Cryptocurrency market sentiment has been overwhelmingly negative towards Bitcoin (BTC) over the past month, according to data analysis firm Santiment. This unusual period of fear, uncertainty, and doubt (FUD) could present a buying opportunity for patient investors willing to weather market volatility. Despite the potential for a price increase, the market is currently experiencing "Bitcoin trader fatigue" with prices stagnating between $65,000 and $66,000.
Interestingly, amid this FUD, Bitcoin whales are rapidly accumulating BTC in anticipation of a market rebound. Santiment suggests that this combination of negative sentiment and whale accumulation typically precedes a market correction, where Bitcoin's price rebounds strongly, rewarding patient investors.
Furthermore, 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 aligns with a consistent pattern where Bitcoin price highs and lows coincide with peaks and lows in Fed liquidity.