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Bitcoin’s price has returned to the $27,000 mark, however, the anticipated major surge hasn’t taken place yet. Cryptocurrency investors often predict future price movements by examining past data. Of course, this method does not always provide accurate ideas about the future. For instance, the new bottom we saw below the previous bull peak in 2022 was something that history didn’t predict.
Santiment, a blockchain analysis platform, stated that the fear level in the digital assets realm, based on trending crypto terms, resembles the time following FTX’s crash last year. Why does this matter for the price? At that time, this metric indicated the completion of the deepest low for cryptocurrencies, and it turned out to be correct. Today, Bitcoin’s price is significantly above the $15,450 level.
Santiment elaborated;
The fact that almost all trending crypto keywords are related to hardware wallets and security is one of the main signs of fear. After the crash of FTX, we saw similar security concerns from investors in November. This indicated that the market hit the bottom.
Bitcoin and Crypto Forecast
Santiment also noted that as Bitcoin’s price recently receded to the $26,000 levels, the amount of discussion about the crypto king on social media has increased, another signal hinting at a possible short-term leap for BTC.
With the price returning to the $26,000 region, investors are increasing their worries about BTC falling into the $20,000 to $25,000 range. BTC’s social dominance has again jumped to high levels, which is a typical sign of fear. Fear signals increase the probability of recovery.
Finally, Santiment reported that Bitcoin transactions have reached levels last seen 22 months ago in July 2021 (when it was preparing for its ATH) when it hit the $29,000 low.
“As prices are correcting across the market, Bitcoin’s utility showed a serious drop in May. For the first time since July 2021, we see less than 800,000 unique BTC addresses transacting daily on the network.”
As of the time this article was prepared, the price of Bitcoin stood at $27,156.
