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Analysts from cryptocurrency analytics firm Santiment have shared their views following the recent rally in Bitcoin.
According to the analytics firm, BTC has recently surged above $66,000, creating excitement among traders. Santiment argued that this week’s pump was mostly felt in altcoins due to profit taking after BTC’s rise in the last three weeks.
Bitcoin Price Has Reached FOMO Level and a Correction May Be Coming, Santiment Analysts Claim
Santiment warned that bulls’ patience could be tested as the general sentiment in the cryptocurrency market surpasses levels of FOMO (greed) for Bitcoin. He added that this typically coincides with approaching local tops. He said the local top could come today, this weekend, or in the coming weeks, depending on whales’ behavior at these levels.
Analysts believe that the cryptocurrency trading community is increasingly likely to experience a correction as the price of Bitcoin reaches greed levels. They point to a threshold of around $63,000 for the greed level. According to analysts, $53,000 would cause the community to fall into the fear zone, which could result in the market seeing more possibilities on the bullish side.
They defined the area between $63,000 and $53,000 as the neutral zone and believe that the market behaves less predictably in these areas.
However, Santiment analysts also have an interesting claim. According to analysts, they do not believe that Bitcoin will be bought again after falling to the $50,000 or $60,000 region. They think that the only way for this to happen is if the world economies themselves give alarm signals.
At the time of writing, Bitcoin has pulled back somewhat from its peak of $66,000. BTC is currently trading at $65,847 and has gained 4.3% in the last week. On the other hand, Ethereum has interestingly gained 5.75% and, unusually for a long time, ETH has outperformed BTC this week.
The biggest riser of the last week was Shiba Inu (SHIB), thanks to the hype around memecoins. SHIB has risen by an impressive 38% and currently has a market cap of $11 billion.
*This is not investment advice.