Traders Eye $110K Bitcoin, but Santiment Warns of Overheated Optimism

Crypto traders are growing confident that Bitcoin could soon reclaim the $110,000 mark, but this rising optimism may not be as bullish as it appears, according to blockchain analytics platform Santiment. Analyst Brian Quinlivan highlighted that excessive retail enthusiasm often precedes local price tops, warning traders to exercise caution even as sentiment indicators flash green. “It’s pretty clear that the crowd is starting to salivate over a potential $110K+ Bitcoin market value,” Quinlivan stated . He explained that trader emotions can often lead to ill-timed decisions, with price action frequently moving against overly bullish retail sentiment. Bullish Sentiment Hits Three-Week High Santiment’s data shows that bullish comments on Bitcoin now outnumber bearish ones by a ratio of 1.51 to 1, the highest reading in the past three weeks. This spike in optimism mirrors previous instances that preceded price corrections, including the declines seen on June 11 and July 7 after similar sentiment surges. On Monday, Bitcoin briefly touched a local high of $109,595 before retracing to $107,681, coinciding with a wave of bullish commentary across social platforms. Quinlivan noted that this pattern aligns with retail investors “buying into the rising momentum” of Bitcoin’s price, which often results in short-term pullbacks. Despite the potential for a near-term correction, Bitcoin remains in an upward trend, currently trading near $108,000, up 2.84% over the past week, according to CoinMarketCap. Bitcoin Whale Inactivity Signals Market Caution Quinlivan also pointed out that Bitcoin whale wallets holding between 10 and 10,000 BTC have shown limited movement in recent days, a signal that may warrant caution. “For now, these wallets have been somewhat suspiciously flat,” he said, revealing that whales offloaded 14,140 BTC over the past week, indicating a pause in accumulation. Historically, whale accumulation often happen just before price increases, while periods of distribution or inactivity have signaled upcoming price declines across the crypto market. However, Quinlivan emphasized that the broader outlook remains bullish, with whales and sharks steadily accumulating Bitcoin over the past six months despite short-term market fluctuations. While traders remain eager for Bitcoin to reclaim its all-time high of $111,970 reached on May 22, Santiment suggests that a “mild pullback” could be healthy before a sustained move toward new highs, allowing market momentum to stabilize before the next major leg upward. The post Traders Eye $110K Bitcoin, but Santiment Warns of Overheated Optimism appeared first on TheCoinrise.com .

Source: The Coin Rise