Following yesterday’s impressive performance, Bitcoin’s investor sentiment has shifted from extreme fear to greed. The fear of missing out (FOMO) has increased, with buying pressure surging as Bitcoin soared over 12% in the past week. Moreover, the selling pressure on Bitcoin has reduced while whale accumulations increased.
BTC’s price resurgence positively affected the broader crypto market, with several altcoins recording price gains. However, the analytical platform Santiment calls for caution despite the sudden bullish outlook.
Santiment Calls for Caution Amid Ongoing Rally
Santiment noted that FOMO has returned to the market, with Bitcoin breaking above $63,300.
🤑 FOMO has made a return with Bitcoin back at $63.3K. Crypto began rebounding almost precisely after Trump's near assassination Saturday, and it hasn't slowed down since. Cautiousness is recommended when the crowd has collectively become so bullish without many signs of fear. pic.twitter.com/B0AuAqTO1v
— Santiment (@santimentfeed) July 15, 2024
According to Santiment, the crypto market entered a recovery phase after the failed Donald Trump assassination attempt on Saturday.
Trump’s running mate, JD Vance, has a crypto-friendly stance, which Trump has also adopted. Santiment notes that the market’s bullish outlook comes from investors’ belief that Donald Trump could win the US Elections.
Some believe the assassination attempt increases the odds of Trump winning the election. However, Santiment advises investors to stay cautious when the crowd is collectively bullish.
Meanwhile, the popular Bitcoin sentiment indicator, the Crypto Fear and Greed Index, moved from extreme fear to greed between July 13 and 16. This implies that investors have entered an accumulation phase likely supporting the market recovery.
Bitcoin ETF Inflows Crosses $300 Million Benchmark on Monday
Bitcoin’s recovery resulted in massive Spot BTC ETF inflows this week. The eleven Spot Bitcoin ETFs recorded net inflows of $300.9 million on July 15.
According to Farside Investors data, BlackRock and Ark21 Shares funds led the inflows, recording $117.2 million each. These inflows confirm positive investor sentiment for Bitcoin and other cryptocurrencies market.
Crypto portfolio strategist Ben Simpson believes Bitcoin has recorded its bottom this cycle and is well positioned for a significant rally.
I think the local bottom is in.
Things are changing in the market:
Germany has stopped selling
Fear sentiment has bottomed, in my opinion
Powell signalling lower rates
S&P ripping to new highs
ETH ETF launch in the coming weeks
BTC ETF seeing biggest inflows in weeks
Alts…— Ben Simpson (@bensimpsonau) July 14, 2024
Simpson noted that the market’s fear diminished as Germany paused its Bitcoin sales. The US Feds’ push for lower rates has also contributed to improved market sentiment.
Also, the S&P 500 has hit new all-time highs, and Spot ETFs recorded its biggest inflow in weeks. Simpson believes altcoins’ gradual rebound and investors’ aggressive buy-the-dip activity are bullish signs of a market recovery ahead.
What Next for Bitcoin?
Bitcoin formed four consecutive green candles between July 12 and 15, confirming massive interest from buyers. Yesterday’s large green candle flipped the $62,400 resistance level to support, showing intense buying pressure.
The red candle formed today, July 16, shows short-term holders taking profit after the recent four-day rally. Nevertheless, the market is still bullish, with Bitcoin trades approaching the upper band of the Donchian Channel (DC).
Also, the RSI indicator is above the neutral zone and heading to the buy zone with a value of 55.79. If the RSI moves to 60, Bitcoin will likely rally above the $65,000 resistance level in the coming days.
However, a slight pullback might occur today due to some traders taking profit before the rally continues.
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Rida Fatima
Crypto/Tech Content Writer
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