Bitcoin Trader Fatigue Hits Record Levels as Price Awaits Rebound

Cryptocurrency investors have shown extreme levels of fear and uncertainty toward bitcoin (BTC) over the past month.

According to on-chain data analysis firm Santiment, this extended period of negativity is unusual and could signal a potential buying opportunity for those who can endure the market’s inherent volatility.

Record FUD Levels and Whale Accumulation

Many investors are anticipating a rebound in bitcoin (BTC) prices after several weeks of stagnant trading. Despite the high potential for a price increase, blockchain analytics platform Santiment reports that the market is currently experiencing “bitcoin trader fatigue.”

With prices hovering between $65,000 and $66,000, recent data indicates an extreme level of negativity in crowd sentiment towards BTC, marking an unusual fourth consecutive week of fear, uncertainty, and doubt (FUD). Santiment notes that this prolonged FUD is rare as traders continue to sell off their holdings.

🫣 The crowd is mainly fearful or disinterested toward Bitcoin as prices range between $65K to $66K. This extended level of FUD is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient. pic.twitter.com/WMy3lbdjEB

— Santiment (@santimentfeed) June 20, 2024

According to a chart shared by the company, bitcoin’s Weighted Sentiment is at -0.800433. Amid this FUD an interesting trend has emerged with bitcoin whales accumulating BTC at a rapid pace in anticipation of an inevitable rebound.

Santiment highlights that this negative sentiment, combined with the accumulation by whales, typically leads to a market correction where bitcoin’s price rebounds strongly, resulting in gains for patient investors.

Could BTC’s Price Rebound Happen in 10 Days?

Meanwhile, bitcoin’s price trajectory might soon benefit from favorable macroeconomic conditions in the United States. Financial commentator Tedtalksmacro, known for tracking the correlation between BTC price action and U.S. Federal Reserve liquidity, predicts a positive shift in the coming days.

The correlation between Bitcoin + Fed Liquidity never ceases to amaze me.

Liquidity bottoms in the coming 10 days, then rips higher again… get ready. https://t.co/0nHCaaOAxc pic.twitter.com/LEm6F1dR3F

— ted (@tedtalksmacro) June 19, 2024

According to Tedtalksmacro, the BTC price has closely mirrored Fed liquidity conditions for several months, and with liquidity expected to bottom out and surge higher within the next ten days, bitcoin could see a corresponding rise.

“The correlation between Bitcoin and Fed Liquidity never ceases to amaze me. Liquidity bottoms in the coming 10 days, then rips higher again… get ready,” he wrote in a recent post on X.

Their analysis, supported by a chart from their proprietary macro data resource, Talking Macro, shows a consistent pattern where bitcoin price highs and lows align with peaks and lows in Fed liquidity. Notably, bitcoin’s latest all-time high of $73,800 in mid-March coincided with a liquidity spike.