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Here Is a Key Sign to Watch for a Bitcoin Price Breakout, Per Santiment

Thu, 02/03/2022 - 10:18
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Tomiwabold Olajide
Here is a key sign to watch for a breakout in Bitcoin price, according to Santiment
Here Is a Key Sign to Watch for a Bitcoin Price Breakout, Per Santiment
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On-chain analytics firm Santiment suggests a key sign to watch for a breakout in the Bitcoin price in one of its latest tweets. Bitcoin and the broader crypto market faced selling pressure earlier, with the BTC price touching lows of $36,634 on Feb. 3.

In the prior week, Bitcoin steadily rose as it rebounded from lows of $32,933 reached on Jan. 24. Trader sentiment quickly flipped positive as bullish calls increased. Santiment noted a spike in its positive/negative sentiment indicator as calls across crypto social platforms had their second most positive week in three months.

Bitcoin's journey above $39,000 was short-lived, however, following a price rejection. Santiment believes that traders' sentiment flip to strongly positive was rather premature, resulting in a market drop. The inverse correlation between sentiment and prices remains as the on-chain analytics platform notes that Crowd Fear & Impatience might be a key breakout sign for the Bitcoin price.

Altcoins likewise down

At the time of publication, the first and largest cryptocurrency by market capitalization, Bitcoin, is changing hands at $37,017. Bitcoin is down 3.5% in the past 24 hours, according to CoinMarketCap data. Ethereum, the largest altcoin, was trading at $2,668, off 3.14% for the same period.

In broader cryptocurrency markets, most alternative cryptocurrencies, otherwise known as altcoins, were also in the red. At the time of publication, Solana (SOL,- 9.60%), The Sandbox (SAND, -8.19%) and Kusama (KSM, -8.28%) were significantly down, based on data from CoinMarketCap.

Solana is trading down after a "potential exploit" of more than 120,000 ETH (nearly $326 million in total) were discovered on cross-chain bridge Wormhole.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.