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Potential Reason for Bitcoin Rising Above $65,000

Opinions
Mon, 11/08/2021 - 09:30
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Arman Shirinyan
Here's a potential reason why Bitcoin has risen back above $65,000
Potential Reason for Bitcoin Rising Above $65,000
Cover image via stock.adobe.com

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Previous Bitcoin price action was followed by a significant plunge in traders' sentiment. While Bitcoin was moving without strong buying power in the $63,000-$58,000 range, traders started to lose their optimism, according to Santiment.

While the provided data might sound contradictory, there is, in fact, an inverse correlation between Bitcoin's price and overall trader sentiment. A strong drop in sentiment has usually been followed by a strong price increase right after.

Santiment Data
Source: Santiment

Historically, prices on the cryptocurrency market are generally moving in the opposite direction of the crowd's expectations. While rallies may be fueled by the retail traders, in periods of correction or consolidation, whales are usually the ones that change the direction of the market.

Previously, on-chain data suggested that the percentage of whales on the cryptocurrency market has been increasing exponentially, which is usually considered a positive thing for the cryptocurrency market since whales tend to pump the market rather than crash it.

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As of now, Bitcoin traders' sentiment has hit September lows right before its price jumped back above $65,000. At press time, Bitcoin's trading volume does not seem to break any local records, which indicates that retail traders are not interested in selling or buying right now.

At press time, Bitcoin has reached the previous Oct. 20 high of $66,283 and is now trading with 4.5% profit but is still failing to go through the previous top resistance.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.