Crypto traders are displaying increasing bullish sentiment towards Bitcoin, particularly regarding its potential to reclaim the $110,000 threshold. However, blockchain analytics firm Santiment cautions that this surge in optimism isn’t necessarily a positive omen.
Bullish Bitcoin Comments Reach Three-Week High
Santiment data indicates a sharp rise in trader sentiment, with a current ratio of 1.51 bullish comments to every bearish one analyzed across platforms including X, Reddit, Telegram, 4chan, BitcoinTalk, and Farcaster. This represents the highest bullish-to-bearish sentiment ratio observed in the last three weeks.
“It’s clear the crowd is starting to salivate over a potential $110K+ Bitcoin market value,” Santiment analyst Brian Quinlivan told Cointelegraph. He further noted that instances mirroring the current sentiment pattern occurred on June 11 and July 7, both preceding Bitcoin price drops, reinforcing the “risk management” perspective.
Quinlivan explained, “We saw clear signs that retail was buying into the rising momentum of Bitcoin’s price” on Monday as it briefly reached $109,595 before pulling back to $107,681. He argued that “prices move in the opposite direction of the crowd’s expectations,” as retail investors often suffer financial losses from emotionally driven decisions.
Anticipating Pullback Before New All-Time High
According to Quinlivan, Bitcoin is likely to face a “mild pullback” before breaking through the all-time high of $111,970. Currently trading around $108,791, Bitcoin has climbed 2.84% over the past seven days.
A significant point of caution highlighted by Santiment concerns the inactivity of major whale wallets holding between 10 and 10,000 BTC. “For now, these wallets have been somewhat suspiciously flat,” Quinlivan stated, noting a sale of 14,140 BTC in the last week. He explained that “when whales … stop accumulating, it often signals market declines,” countering the argument that accumulation signals an immediate price increase. Conversely, he emphasized that the six-month trend shows steady accumulation by large holders, pointing to this as the more important long-term indicator.
Macro Headwinds on the Horizon
Looking ahead, the crypto market faces potential headwinds despite recent sentiment shifts. Xavier Rodriguez-Alarcon, chief commercial officer at XBTO, highlighted the Federal Reserve’s upcoming policy minutes release, scheduled for Wednesday. He commented, “the release will likely create significant headwinds for risk assets,” suggesting broader macroeconomic conditions could influence Bitcoin’s price.
While concerns regarding the US President’s potential tariffs have eased slightly due to an Aug. 1 deadline extension, Rodriguez-Alarcon pinpointed “macro wait-and-see” factors as prominent influences currently.
This analysis does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
