Bitcoin (BTC) climbed to a four-month excessive above $21,000 within the third week of January, embellishing dealer’s hope. The market has seen essentially the most substantial investor optimism since July because of the January BTC value rebound.

According to knowledge from crypto analytics agency Santiment, the buying and selling crowd sentiment has touched its highest in six months and second highest bullish sentiment prior to now 14 months. The info signifies that merchants are treating Bitcoin’s value rebound as a sign of a attainable larger breakout within the close to future.

The time period “crowd/investor sentiment” describes how buyers usually really feel a few particular asset or monetary market. It refers back to the temper of a market, or the psychology of its members, as expressed by exercise and modifications within the value of the asset exchanged in that market.

The chart above exhibits three main spikes in investor sentiment since 2021. The primary main spike in sentiment got here in November 2021, adopted by the BTC value surge to a brand new all-time excessive of $68,789. The second main spike got here in July 2022 amid hints from the USA Federal Reserve about attainable inflation ease, adopted by a minor value surge. Whereas the value rise post-spike in crowd sentiments in July 2022 wasn’t very vital as a consequence of marketwide bearish sentiment, merchants did purchase the dip at $19,000.

Bitcoin value rally over $21K prompts analysts to discover the place BTC value may go subsequent

The most recent spike in crowd sentiment got here after a protracted winter in 2022. Market analysts imagine the BTC value rebound may signifya market backside. According to independent market analyst HornHairs, the time from bottom to top and top to bottom has remained constant since 2015 at 152 weeks and 52 weeks, respectively.

$BTC #Bitcoin
2015-2017 bull market: 1064 days
2017-2018 bear market: 364 days

2018-2021 bull market: 1064 days
2021-*present* market low: 364 days

Days left till the highest if we simply carbon copy the cycle timeframe once more: 1001 days pic.twitter.com/KoNZxJRuy5

— HornHairs (@CryptoHornHairs) January 12, 2023

The run-up to the highest and backside of the prior cycles look surprisingly comparable when inspecting the long-term value conduct of Bitcoin. What’s extra intriguing is that the 2020 to 2021 cycle seems to comply with the same development.