Bitcoin trader fatigue hits record highs as price waits for rebound

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

According to chain data analytics firm Santiment, this extended period of negativity is unusual and could signal a potential buying opportunity for those who can withstand 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 price upside, 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 such prolonged FUD is rare, as traders continue to sell their holdings.

🫣 The crowd is mostly fearful or disinterested in Bitcoin as prices hover between $65,000 and $66,000. This widespread 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, weighted bitcoin sentiment is at -0.800433. Amid this FUD, an interesting trend has emerged with bitcoin whales hoarding BTC at a rapid pace in anticipation of an inevitable bounce.

Santiment points out that this negative sentiment, combined with whale accumulation, typically leads to a market correction where the price of bitcoin rebounds sharply, resulting in gains for patient investors.

Could BTC Price Bounce Happen in 10 Days?

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

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

Liquidity bottoms out in the next 10 days, then rises again… brace yourself. https://t.co/0nHCaaOAxc pic.twitter.com/LEm6F1dR3F

— ted (@tedtalksmacro) June 19, 2024

According to Tedtalksmacro, the price of BTC has closely mirrored the Fed’s liquidity conditions for several months, and with liquidity expected to bottom out and increase over the next ten days, bitcoin could see a corresponding increase.

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

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

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