Crypto Market Lacks Sufficient Fear Signals to Confirm Bottom, Analyst Warns

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Cryptocurrency traders have not displayed adequate fear on social platforms to validate a market bottom, according to a crypto analyst who suggested Bitcoin may still decline to approximately $75,000.

“It looks very tempting to come even closer to it,” Maksim Balashevich, founder of crypto market sentiment platform Santiment, said in a video posted to YouTube on Friday.

Such a move would represent roughly a 14.77% decline from Bitcoin’s present price of $88,350, according to CoinMarketCap.

Balashevich clarified that his caution stems from witnessing substantial optimism online regarding a near-term reversal of the downtrend, which he noted is typically absent when an authentic market bottom is taking shape.

“The crowd isn’t scared enough for a bottom,” Santiment said in a report released the same day.

Excessive optimism represents warning sign, Balashevich explains

“In one particular crowd-dominated or retail-dominated channel, they’re mostly discussing Bank of Japan cut rates, and bears got caught, and now we’ll continue up from here,” he said.

“These kinds of statements are not what I want to see,” he remarked, noting that under different circumstances, he would be “very confident” in declaring a market bottom.

Japan’s central bank elevated interest rates to a 30-year peak of 0.75% on Friday, an action that has historically been linked with approximately 20% corrections in Bitcoin.