Overconfidence in Bitcoin’s Rally to $70K Spells Warning for Massive Correction, Data Shows

• Bitcoin has surged to $66,480, marking a two-month high and boosting the altcoin market.
• Market participants are targeting Bitcoin to reach the $70K level soon.
• Santiment warns that overwhelming bullish sentiment could lead to a price correction rather than a new all-time high.

Bitcoin commenced a bull run in the crypto market two weeks ago and has since reached as high as $66,480. This price point was last seen in July. Bitcoin’s achievement of a two-month high has boosted the broader altcoin market. Many other crypto assets have also reclaimed high points last seen three months ago.

Accordingly, market analysts are projecting that Bitcoin could be headed for the long-lost $70K range, potentially setting a new all-time high beyond $73K. However, intelligence platform Santiment has found grounds to warn that an all-time high may not be feasible for Bitcoin in the near term.

Bitcoin All-time High May Remain Elusive 

In an analysis posted early today, Santiment remarked that while waiting for Bitcoin’s new all-time high, the market may need to temper its expectations. The analysis stressed that there are currently 1.8 bullish posts toward BTC for every 1 bearish post. Specifically, positive commentary toward Bitcoin is at a yearly high following Bitcoin rallying by 22% in three weeks.

This suggests crowd sentiment is extremely bullish, with many anticipating further price gains. However, this may not be a good sign for an uptrend. Santiment highlighted that markets historically move in the opposite direction of the crowd’s expectations.

This implies that while many are hopeful for the $70K level in the near term, a bearish turn could occur, leading Bitcoin to reverse all recent gains before rebounding higher.

Historical Precendent 

For instance, back in February, Santiment disclosed that there was notable bearish sentiment toward large-cap crypto assets like Bitcoin, ETH, and BNB. They all experienced negativity beyond their historical averages for the first time in over six months at that time.

Santiment noted then that widespread concern often signals a potential market bounce, as markets tend to move against prevailing sentiment, surprising short traders. Indeed, the rebound came, and Bitcoin reached an all-time high of $73,750 just four weeks later. Ethereum followed a similar path, reaching high price levels last seen in 2021.

Already, the ongoing bull run is beginning to lose steam as Bitcoin stalls around the $65,500 level, evident in the 0.41% loss BTC posted in the last 24 hours.