Bitcoin’s price action has been pretty boring over the past few weeks as it has created a large trading range between $ 10,200 and $ 11,200. These two levels have generated noticeable responses to the price of BTC on every visit.
This has given investors little insight into the cryptocurrency’s near-term outlook, and it seems like BTC will remain trending until either of those levels is decisively broken.
Now data from an analytics platform shows that this has had a serious impact on investor sentiment in the cryptocurrency, which is now at its lowest level in over two years.
This suggests that the lack of sustained momentum in BTC has seriously hurt investor sentiment over the past few weeks and months.
It is important to note that bouts of extremely low investor sentiment are often viewed as counter-indicators that signal that a sharp spike may be imminent.
Bitcoin is consolidating as a large trading range forms
At the time of writing, Bitcoin is trading at its current price of $ 10,700. That represents a remarkable increase from the recent lows of $ 10,200 set earlier this week.
BTC bounced back to $ 10,800 yesterday before losing momentum and crashing to $ 10,500. After a period of consolidation in this price region, it appears that Bitcoin is now starting to test it again.
$ 10,800 could be a slight resistance level in the near future. Hence, it is imperative that the bulls get past this level firmly as it will open the gates for another test in the below $ 11,000 area.
This region has proven to be a key region – and a renewed rejection could have serious effects on the digital reference system.
Santiment: BTC investor sentiment at 2-year low
The analytics platform Santiment recently stated in a tweet that Bitcoin’s recent sideways movement has shaken the sentiment of cryptocurrency investors.
“BTC’s weighted social sentiment for Twitter, which measures the positive / negative ratio of comments multiplied by the total frequency of comments, is currently at a 2-year low. There has clearly been a pattern of non-believers in the fellowship … „