Bitcoin has soared so far this year, with the bitcoin price rising more than 200% since the beginning of the year.
The 2019 bitcoin price bull run was sparked by rumors and expectations the world’s biggest technology companies were wading into bitcoin and cryptocurrencies, including the likes of social media giant Facebook and iPhone-maker Apple.Now, data analysis has found bitcoin sentiment appears to be similar to early 2017—just months before the bitcoin price soared to almost $20,000.”Our current level of reserve risk is equivalent to where we were in the early part of 2017,” Hans Hauge, senior qualitative researcher at crypto investment fund Ikigai, revealed in a series of Twitter posts.
“That was right before things got really crazy and six to nine months before the bubble burst, bitcoin was around $1,000 to $2,000 at the time.”
The analysis is based on the so-called bitcoin days destroyed technical metric, referring to how often tokens are moved with higher prices tending to coincide with coins moving more often.
“Bitcoin bubble tops are clearly identified with a dark red cluster of adjusted binary bitcoin days destroyed, Hauge added. “Until that happens, we’re not at the top. Public opinion is key here because that red cluster is caused by the assumption of the crowd and is self-fulfilling ,
“[The Bitcoin] Crypto Fear and Greed [Index] is printing all time lows,” Hauge said. “That’s the exact thing you should be looking for if you’re buying the dip for the long-term.”
However, some bitcoin traders and investors are nervously watching traditional markets after a prominent venture capitalist and bitcoin investor has warned a “severe” financial crisis would weigh heavily on the price of bitcoin—and perhaps plunge it back into a bitter bear market.