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<\/p>\nBitcoin (BTC) climbed to a four-month high above $21,000 in the third week of January, embellishing trader\u2019s hope. The market has seen the most substantial investor optimism since July due to the January BTC price rebound.<\/p>\n
According to data from crypto analytics firm Santiment, the trading crowd sentiment has touched its highest in six months and second highest bullish sentiment in the past 14 months. The data indicates that traders are treating Bitcoin\u2019s price rebound as a signal of a possible bigger breakout in the near future.<\/p>\n
The term \u201ccrowd\/investor sentiment\u201d describes how investors generally feel about a specific asset or financial market. It refers to the mood of a market, or the psychology of its participants, as expressed by activity and changes in the price of the asset exchanged in that market.<\/p>\n
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The chart above shows three major spikes in investor sentiment since 2021. The first major spike in sentiment came in November 2021, followed by the BTC price surge to a new all-time high of $68,789. The second major spike came in July 2022 amid hints from the United States Federal Reserve about possible inflation ease, followed by a minor price surge. While the price rise post-spike in crowd sentiments in July 2022 wasn\u2019t very significant due to marketwide bearish sentiment, traders did buy the dip at $19,000.<\/p>\n