"Crypto typically moves opposite to what the crowd is most loudly expecting, because markets tend to punish crowded trades," Santiment wrote in a research note.
The analytics firm suggested that the market might face short-term vulnerabilities due to the rapid influx of optimistic retail traders.
"Optimism doesn’t mean the rally is over, but when traders quickly shift back to calling for higher prices, it’s a sign bulls may need a cool-off before the next cleaner leg up," the analysts added.
Glassnode data supported a cautious outlook, indicating that the recent price recovery resembles market consolidation rather than a definitive breakout.
>>> NBA Free Agency Reshapes Eastern Conference as Superstars Move
As of publication time, Bitcoin traded at $62,600, down 1.1% for the day but retaining a 6.7% gain for the week.
