On September 27, bitcoin (BTC) reclaimed a trading price of $66,500 for the first time since late July. This surge was accompanied by bullish sentiments from many investors.
Instead of going higher, the leading crypto asset has tanked below $64,000 at press time. Blockchain market intelligence platform Santiment shares insight into a possible reason behind bitcoin’s failure to unlock higher prices.
What Could Drive Bitcoin’s New ATH?
The chart below shows the rapid surge in positive commentary towards BTC after the asset unlocked a local high of $66,500. Santiment’s research showed that there were 1.8 bullish BTC posts for every 1 bearish. Most of these bullish comments leaned on the possibility of bitcoin reaching the $70,000 price mark.
If you’re awaiting Bitcoin’s new all-time high, it may need to wait until the crowd slows down their own expectations. There are currently 1.8 bullish posts toward BTC for every 1 bearish post. Markets historically always move the opposite direction of crowd’s expectations. pic.twitter.com/ZxDxalgmzb
— Santiment (@santimentfeed) September 29, 2024
According to Santiment, however, bitcoin could unlock the $70,000 mark if “the crowd slows down their own expectations.” The market intelligence firm added that market charts often move in the opposite direction from the crowd’s expectations. This implies that the market performance could turn green if most crypto participants leaned more toward a bearish outlook on BTC price movement.
BTC Drops Below $64K
After a weekend of a bullish green chart, the leading cryptocurrency has taken a downturn and is currently trading at $63,500. Earlier today, it sunk to $63,250, the lowest in the past four days.
Although no singular factor can be pinpointed as the driver behind bitcoin’s sudden price correction, an earlier CryptoPotato report hints that the upcoming speech from the Federal Reserve’s chair, Jerome Powell, may have contributed to the asset’s price movement.
Earlier this month, the Fed downsized its interest rate to a range between 4.75% and 5%. Later today, Powell is expected to discuss the interest rate cut in more detail.