Cryptocurrency markets are experiencing a significant rally after the U.S. Federal Reserve made a historic move by lowering interest rates for the first time since March 2020.
Bitcoin, in particular, has surged, reaching a peak of $62.2K today.
However, social sentiment is set to play a major role in where the market heads next. As speculation heats up on social media, specific price levels may provide clues to investor emotions:
Although $BTC whale accumulation has decelerated, the weekly net flow has stayed positive for nearly four months.
The last instance of a net weekly outflow among large holders was back in May.
🔗https://t.co/NhVCP3gxOd pic.twitter.com/LlZvz7bEma— IntoTheBlock (@intotheblock) September 19, 2024
– Mentions of Bitcoin in the $50K-$59K range are increasing, indicating fear is spreading among the crowd, which could signal a market bottom.
– $60K-$69K mentions are more neutral, pointing to a period of price consolidation and unpredictability.
– When mentions spike in the $70K-$79K range, it suggests greed is setting in, a potential sign that a market top is near.
📈 Cryptocurrencies are on an impressive upswing following a groundbreaking US Fed decision to cut interest rates for the first time since March 15th, 2020.
The social expectations from the crowd will have a dramatic impact on where we go from here. With Bitcoin reaching as high… pic.twitter.com/AQbQpXqIYI
— Santiment (@santimentfeed) September 19, 2024
Despite Bitcoin’s Recent Pump, Whale Accumulation Slowed
Despite Bitcoin’s rally, whale accumulation has slowed, though the weekly net flow has remained positive for nearly four months. The price currently hovers around $63K, but over 5.1 million Bitcoin addresses are still in the red at today’s price.
Bitcoin is making a strong effort to break through the $63k barrier. Despite this rally, over 5.1 million addresses remain underwater at the current price. pic.twitter.com/PgsESoMiuz
— IntoTheBlock (@intotheblock) September 19, 2024
On Binance, 61.95% of top traders are taking long positions on Bitcoin, showing growing confidence in continued price increases. However, the Bitcoin spot ETF saw a net outflow of $52.8 million on September 18th, marking its first outflow after four days of inflows.
61.95% of the top traders in @binance are going long on #Bitcoin! pic.twitter.com/zjRi3CQTr5
— Ali (@ali_charts) September 18, 2024
Additionally, Grayscale’s GBTC ETF reported a net outflow of $8.13 million, reflecting cautious moves from investors as the market tries to find its next direction.
Bitcoin spot ETF had a total net outflow of $52.827 million on September 18, the first net outflow after the net inflow in the past 4 days. Grayscale ETF GBTC had an outflow of $8.1347 million. https://t.co/59u0BnEqLG
— Wu Blockchain (@WuBlockchain) September 19, 2024
With Bitcoin attempting to break the $63K resistance, all eyes remain on how social sentiment and institutional actions will influence the next phase of the market.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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