Bitcoin and Altcoins Witness Declines, Investors Maintain Resilience: Santiment

Despite Bitcoin and altcoins experiencing a decline in prices over the past few days, investors show resilience and maintain a bullish outlook, according to a recent post by Santiment.

“Bitcoin has seen a drop to $66.4K and altcoins have shed much more of their market caps as prices have continued their concerning retracement to kick off April. However, the crowd is staying quite strong and showing confidence toward the prospects of a quick rebound,” stated Santiment.

Santiment observed a notable prevalence of bullish sentiments in social media discussions. Hashtags such as “#buy,” “#buying,” and “#bullish” are being utilized as much as twice as frequently as bearish hashtags like “#sell” and “#bearish.”

“Historically, the best dip buy opportunities occur when the crowd consensus is showing a bit of fear toward a further drop. This usually results in small wallets dropping their bags for whales and sharks to scoop them up,” added Santiment.

The Bitcoin Fear & Greed Index on the Alternative platform currently registers at 70, indicating a prevailing sentiment of greed among investors. Although slightly down from the previous day, this figure suggests a moderation in investor enthusiasm.

Bitcoin’s price has slipped below $66,000 according to CoinGecko data, marking a nearly 5% decline over the past week. Struggling to break through resistance at $67,000, a breakout is necessary to surpass the next hurdle at $69,500.

Despite this recent price correction, crypto analysts and experts maintain optimism about Bitcoin’s long-term trajectory. Bitwise CIO Matt Hougan anticipates an inflow of approximately $1 trillion into Bitcoin through ETFs from institutional investors over the coming years. If this forecast materializes, it could lay the groundwork for a robust bull market.

“The January launch of spot bitcoin ETFs opened up the crypto market to investment professionals in a major way for the first time ever. And while there are countless forces that will shape Bitcoin prices in the days and months ahead, there’s one reality that I keep coming back to. These investors control tens of trillions of dollars—globally, the best estimate is over $100 trillion—and they are just starting to move into crypto. This is a process that will take years, not months,” stated Hougan. “A 1% allocation across the board would mean ~$1 trillion of inflows into the space.”

Cryptocurrency analyst Michaël van de Poppe suggested that the anticipation and fervor surrounding the impending Bitcoin halving could be waning, potentially paving the way for a price correction in Bitcoin. Nonetheless, he asserts that Bitcoin’s present price action corresponds with historical patterns witnessed prior to the halving event.

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