Bitcoin Revives Interest in Retail Buying, Hinting at Potential Record Highs
Bitcoin's recent flirtation with its all-time high has retail investors buzzing, according to blockchain analytics firm, Santiment. The firm reported an increase in positive Bitcoin comments over negative ones on social media, signaling a surge in retail interest. This enthusiasm hasn't gone unnoticed, as the ratio of positive to negative comments is indicative of retail interest and often signifies a bull run.
In fact, the last time the ratio was this high was during the seven-month period following US President Donald Trump's election. Similar to what Santiment observed, when markets move against retail expectations, spikes in discussion about Bitcoin's all-time high are typically red flags, signifying greed in the market. Notably, the Bitcoin Fear and Greed Index currently sits at 71, which translates to "greed."
Glassnode's recent report highlighted unusual investor behavior in this cycle. Long-term holders (those who have held Bitcoin for over 155 days) have been cashing in, averaging around $930 million per day in profits. Surprisingly, despite this massive selling, their overall supply holdings have continued to grow rather than shrink, creating a "unique duality."
Meanwhile, the whales seem unfazed and may hold out for higher prices. Some analysts believe that they'll wait until significant market bubbles form before making their move.
However, it's not all sunshine and rainbows, as US Treasury Secretary Scott Bessent warned of a potential crisis if the US debt ceiling isn't raised. On the other hand, Swan analysts argue that Bitcoin's fixed supply and the principles of game theory make it the asset of choice in such volatile economic times.
As of Thursday morning Asian trading, Bitcoin has slipped below the $108,000 mark. Despite this short-term correction, some analysts predict that Bitcoin could soar past its previous high of $111,814 before the end of the week. According to Rekt Capital, Bitcoin has successfully retested the $104,400 reaccumulation range high resistance as new support for four straight weeks. He believes that Bitcoin is rebounding from this new support base to transition into price discovery once more.
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[1] Santiment analysis shows market moving against investors expectations.[2] Retail investors remain optimistic about Bitcoin reaching $200,000 by 2025.[3] Key levels to watch: Bitcoin's failure to maintain support above $106,235.[4] 'Joyful June' and institutional flow contributing to market sentiment.[5] Fear & Greed Index reading of Greed (71), Bullish technical indicators with a slight bias towards positive predictions.
- Despite the recent short-term correction, some analysts predict that Bitcoin could soar past its previous high of $111,814 before the end of the week, as suggested by Rekt Capital, who believes Bitcoin is rebounding from a new support base to transition into price discovery once more.
- Indicative of retail interest and often signifying a bull run, the ratio of positive to negative comments about Bitcoin's price is currently high, a trend observed by blockchain analytics firm, Santiment, and was also seen during the seven-month period following US President Donald Trump's election.
- On the other hand, spikes in discussion about Bitcoin's all-time high are typically red flags, as when markets move against retail expectations, they signify greed in the market, as noted by Santiment.
- According to Glassnode's recent report, long-term holders have been cashing in, averaging around $930 million per day in profits, yet their overall supply holdings have continued to grow rather than shrink, creating a "unique duality."
