Crypto traders have “flipped their expectations several times” in just one month, reported analytics provider Santiment on Wednesday.
The crowd was heavily bearish for most of June, calling for lower prices as Bitcoin slipped to $58,000. However, they’ve flipped bullish now as BTC rebounded towards $64,000, said Santiment before adding:
“These fast mood swings show how reactive retail sentiment can be when price starts moving.”
Markets Move Opposite to Crowds
Crypto typically moves opposite to what the crowd is most loudly expecting, “because markets tend to punish crowded trades.” This can be seen in action today as markets have retreated 1.5% with Bitcoin falling below $63,000 on Wednesday morning in Asia.
“Optimism doesn’t mean the rally is over, but when traders quickly shift back to calling for higher prices, it’s a sign bulls may need a cool-off before the next cleaner leg up,” said Santiment.
The market dip followed renewed strikes on Iran by the US following the attack on commercial ships in the Strait of Hormuz.
“US Central Command forces have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway,” stated Centcom.
CryptoQuant analyst ‘Darkfost’ said on Tuesday that the apparent demand for Bitcoin has stayed negative for almost the entire year.
“The dynamic remains unchanged and perfectly illustrates the current weakness in Bitcoin demand,” despite the recent rally, he said.
Currently, Bitcoin remains in a “risk-off regime,” said analyst Axel Adler Jr.
“Inter-exchange flow through Coinbase Advanced is still weak, and momentum is not yet showing a sustained reversal higher,” he added.
Bitcoin Price Outlook
The renewed attacks in the Middle East have doused the flames of the recent rally, with markets losing $50 billion over the past 12 hours.
Bitcoin fell to an intraday low of $62,600 during Wednesday morning trading in Asia, down 2.3% from its intraday high of just over $64,000 late on Tuesday.
Ether has followed suit, falling from $1,800 to $1,750 at the time of writing, while most of the altcoins are back in the red again.
Source: CryptoPotato
