Bitcoin Surges Above $56K: Santiment Warns of Potential Bearish Signals

Santiment, a leading market intelligence firm, has hinted at a bearish signal amidst the prevailing bullish sentiment in the cryptocurrency market. The crypto market regained its optimism as Bitcoin broke out of consolidation in the last 24 hours to claim a new multi-year high.

According to data from market tracking resources, Bitcoin has reached $56,728, up from a 24-hour low of $50,931. Santiment noted that with Bitcoin’s current market position, the asset is barely 20% gain away from breaking the all-time high of the previous bull market attained some 27 months ago.

Moreover, the market intelligence platform highlighted that, at this crucial juncture, trader attention towards BTC is exceptionally high, with altcoins temporarily receiving less focus.

Furthermore, Santiment pointed out that in previous occurrences where resistance levels were surpassed during this bull cycle, profits from Bitcoin were often redirected into more speculative assets. However, it added that if smaller traders attempt to outpace large investors and start driving up meme coins, it would be possible for Bitcoin’s dominance to increase persistently.

Meanwhile, the analytic platform brought attention to a bearish factor that could negate the bullish optimism in the market. In particular, Santiment pointed to the recent incident involving the BitForex exchange, where the platform abruptly halted user withdrawals without prior notice. The development followed suspicious activities, including $56.5 million disappearing from BitForex’s hot wallets.

According to Santiment, this bullish celebration around Bitcoin could be temporarily paused depending on the crowd’s level of apprehension. At press time, Bitcoin trades at around $56,500 following a significant 10.5% gain within the past day.