Bitcoin sentiment these days is still bullish. This was revealed by Santiment a few days ago, saying that Bitcoin’s weighted sentiment is still at 0.25, while Ethereum’s sentiment is at 0.32.
Bitcoin’s sentiment unaffected by market crash, according to Santiment’s analysis
This comes after a significant 18% increase in July, and a slight decline in early August.
Despite this slowdown, crypto traders are still expressing bullish sentiment toward the two assets, according to Santiment.
Certainly, the still-positive sentiment for Ethereum is influenced by expectations for the September Merge, while as far as Bitcoin is concerned, the hypothesis that the bottom was hit in June is probably the one that has the greatest impact.
In fact, after dropping as low as $17,500 shortly after mid-June, Bitcoin’s price has never returned to that level. Indeed, in July the lowest level was just under $19,000, with a peak at $24,500 at the end of the month.
So far in August, it has not been able to stay above $24,000 since, but apparently, not many people believe that in the short term it can return to June’s lows. Moreover, both last year and the year before, the crypto markets had performed well in August.
As for ETH, the picture seems a little clearer.
The June low was below $900, while in July it never fell below $1,000. On the contrary, it touched a monthly high above $1,700, and then only fell below $1,600.
July therefore, was a decidedly good month for ETH prices, when compared with June levels, and the drop in early August is very small.
Against such a backdrop it does not seem particularly strange that sentiment remains bullish, although it must be said that this metric is also capable of changing very quickly.
What to expect from the results of the sentiment analysis
In any case, this is a sentiment that is yes positive, but not very high. This suggests that markets are unlikely to expect the start of a new bull run any time soon, but perhaps a rebound after the annual lows of June.
In addition, close attention needs to be paid to what might happen to the price of ETH after the September Merge, because markets often price in the news ahead of time. If the Merge were to go wrong, there would certainly be problems in the markets as well, but it is much more likely that everything will go right, given the many successful tests already carried out.
However, even if it were to go well it is possible that the price could then fall because those who bought earlier in the hope of a price increase thanks to the Merge will easily sell to monetize the gains once it happens.
Added to this is the fact that the macro situation does not look particularly good, and in the event of new major problems in global financial markets, sentiment could also suddenly veer into negative territory. This is why Santiment itself says that the price of Bitcoin in August could go up, but in theory, it could also go back down.