Bitcoin Crowd Sentiment Falls to Historic Low, Here’s Why It’s Bullish for $BTC Price

Bitcoin’s ($BTC) price rose above $45K again after a comparatively low activity-filled weekend. The price of the top cryptocurrency lost $50K key support during last week’s market flash crash. $BTC was looking well set to test $55K resistance but now is struggling to build momentum above $50K.

Bitcoin broke out of 3-month long price slumber in August to register a new 3-month high above $50K and the rest of the crypto market showed bullish resurgence as well. However, September has historically proven to be a bearish month with Bitcoin monthly returns coming in negative for the most part and even on a couple of occasions, the gains were in single digits. 2021 seems to be no different, although the first week was fairly bullish making many believe that the top cryptocurrency might break the September jinx, now it seems September would continue to remain RED.

As per crypto analytic firm Santiment data, the Bitcoin crowd sentiment has reached historical lows. The metric includes commentary volume, combined with positive vs. negative $BTC scores. While the negative market sentiment shows the current market outlook, historically the price of BTC has registered a significant bounce back as crowd sentiment hits newer lows which can be seen in the chart below.

Bitcoin Needs to Conquer $50K

The top cryptocurrency has built a strong on-chain support zone in the $5K-$50K range and was looking to enter in the $55K-$59K on-chain support zone before the flash crash. For now, $50K is the key resistance to cross and conquer as major buy orders were filled in this region. Once the top cryptocurrency manages to conquer the key resistance and convert it into support, the price momentum could get on the bullish bandwagon. The top cryptocurrency might also see a golden cross formation considered highly bullish in the coming days.

Bitcoin’s price momentum has also been overshadowed by altcoins’ phenomenal run in the second leg of this bull run. Several altcoins have already hit new all-time highs including the likes of Solana ($SOL), Terra ($LUNA), Cardano ($ADA), and few others. With another couple of weeks to go in September, the top cryptocurrency would like to get closer to the $50K mark.