- Taker Buy Sell Ratio signals caution, lowest since November 2021.
- Social sentiment plunges, marking the most negative since June.
- Tom Lee stresses Bitcoin’s resilience with $2 trillion market capitalization.
Bitcoin’s market structure is showing signs of caution. CryptoQuant reported that Bitcoin’s Taker Buy Sell Ratio has dropped to its weakest point since November 2021. The indicator measures aggressive buying against selling activity, and the recent decline shows selling pressure outweighing buying momentum.
Despite Bitcoin trading within a broader bullish cycle, sentiment does not confirm its price trajectory. The asset is currently hovering near $111,595, creating unease among traders.
Traders note that such divergences have been seen before. In 2021, similar conditions developed before Bitcoin’s post-top retracement.
Historical comparisons suggest that mismatches between market structure and psychology often lead to sharper swings. Analysts are debating whether this move signals a temporary shakeout or the start of deeper corrections.
Social Sentiment Turns Sharply Negative
Analyst Ali Martinez’s data shows Bitcoin’s social sentiment has plunged to its lowest level since June. Metrics tracking social volume and weighted sentiment show a sharp bearish tilt across online discussions.
Martinez highlighted that conversations around Bitcoin have turned pessimistic despite fluctuating trading levels. Bitcoin’s price climbed in early August but has since retraced in recent sessions.
The decline in sentiment aligns with this pullback, reflecting fragile confidence among retail participants. Historically, negative social sentiment has often preceded recovery phases.
Tom Lee Highlights Long-Term Strength
Amid rising caution, analyst Tom Lee emphasized Bitcoin’s resilience in a recent interview. He noted that the cryptocurrency has reached a $2 trillion market capitalization, placing it among the largest assets in financial history.
Lee stated that no asset at such a valuation has ever disappeared, underscoring Bitcoin’s durability.
He also warned investors that dismissing Bitcoin could be risky as institutional interest continues to grow. Lee’s remarks highlight the cryptocurrency’s staying power, even as short-term sentiment weakens.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
