Despite Bitcoin's price nearing $70,000 and an increase in bullish posts among traders, independent crypto analyst Matthew Hyland contends that the current market sentiment is not genuinely bullish. He notes that while there seems to be enthusiasm within the crypto community, actual retail investor engagement remains subdued when compared to 2021, leading to a perception of an echo chamber effect. Currently, market participants are at about 10% of their 2021 levels and 50% compared to earlier in 2024. Though the Crypto Fear and Greed Index indicates a score of 72, suggesting bullish sentiment, historical patterns show that excessive exuberance can lead to market corrections. On-chain analytics firm Santiment warns that markets often move contrary to the crowd’s expectations, noting that there are 1.8 bullish posts for every bearish post about Bitcoin. Despite recent price increases and bullish remarks from prominent traders, analysts caution a more tempered outlook on persistent market sentiment.

Source 🔗