Bearish sentiments fade as crypto traders expect a rebound in Q4, data shows
The overall cryptocurrency market has been dominated by bearish sentiments throughout 2022 as prices of key assets corrected significantly amid the extended selloff. However, overall investor sentiment appears to be changing, signaling that markets may turn green in the near future.
Notably, as of October 20, trader sentiment was at its most positive in a month, with investors anticipating a rebound in the prices of Bitcoin (BTC), Binance Coin (BNB), XRP and Cardano (ADA), data by blockchain analytics firm Sentiment indicates.
Among the featured assets, Bitcoin has a weighted sentiment of 0.52. At the same time, the second-ranked crypto by market capitalization, Ethereum (ETH), is the only top digital asset highlighted by the behavioral analysis platform that shows a slight bearish sentiment.
“But the persistent negativity and bearishness has faded as traders expect a rebound here in Q4. BTC, BNB, XRP and ADA all indicate bullishness from the public, while ETH is only slightly bearish.” the platform noted.
Bitcoin’s possible bottom
The positive outlook for Bitcoin comes with the asset consolidating around the $20,000 level, a factor pushing the market to believe a bottom has been reached. Furthermore, a possible rise in Q4 is in line with the estimates from Bloomberg Intelligence’s commodity strategist Mike McGlone.
As reported by Finbold, McGlone argued that Bitcoin’s ability to remain stable amid the latest rate hike by the Federal Reserve shows that the asset is ready to break out. At the same time, cryptoanalyst Kevin Svenson has suggested that based on historical price movement, Bitcoin is in line for an April 2023 breakout.
Furthermore, a Bitcoin rally has historically inspired the general cryptocurrency market to follow suit. However, some assets like XRP are gaining bullish momentum from related network activity.
In this case, XRP benefits from the positive developments from the ongoing case between the token’s parent company, Ripple, and the Securities Exchange Commission (SEC). With Ripple registering minor gains in recent weeks, the development has been translated into XRP’s price.
Ethereum remains bearish after the merger
Interestingly, Ethereum is experiencing bearish sentiments despite the historic Merge upgrade meant to inspire a price rally in the asset. In particular, the upgrade has been singled out as having a long-term impact on Ethereum after the incident turned out to be a “buy the rumor, sell the news” scenario.
Overall, cryptocurrencies have been correcting amid the Federal Reserve’s high tightening policy to control skyrocketing inflation. However, part of the market believes that the Fed is likely to slow down on tightening to curb the economy from plunging into a recession.
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