Bitcoin’s price has been pretty steady around $108,000 – $110,000 for most of June and early July. While things still look generally positive, some recent data suggests we should be cautious.
Investor Sentiment Soars
According to crypto analytics firm Alphractal, Bitcoin investor sentiment is currently “very bullish.” They use something called the Alpha Crypto Sentiment Gauge, which tracks investor emotions, ranging from extreme fear (red) to euphoria (dark green).
Recently, the gauge hit dark green, indicating extreme bullishness. This is a big change from late June when it showed bearish signals. Alphractal noted that this shift actually led to more buying and squeezed out some bearish traders.
Green Doesn’t Always Mean Go
However, Alphractal warns that a “very bullish” signal isn’t automatically a guarantee of continued price increases. While it creates buying opportunities, it also suggests that the market might be getting overconfident. Historically, this kind of euphoria can lead to big price swings, both up and down. A sharp correction could follow, especially if the bullishness is based on hype rather than solid market fundamentals.
What’s Next for Bitcoin?
Essentially, nobody knows for sure. The recent bullish sentiment could signal a new price surge, or it could be a sign that the market is peaking. Traders are advised to stay alert and proceed with caution.
Bitcoin Price Update
After a strong start on Thursday, Bitcoin’s price dipped by almost 2% in the last 24 hours. At the time of writing, it’s trading around $107,754.
