The CLARITY Act’s landmark committee approval has sent Bitcoin sentiment soaring to its highest point in months.
Bitcoin Sentiment Points To Greed After CLARITY Act VoteThat reading mirrors a prior peak recorded on April 25, when the ratio reached 1.58 bullish-to-bearish. Any time the ratio of positive to negative commentary on social media crosses this FOMO zone, then it is an ideal temporary profit-taking moment.
This does not mean Bitcoin has to crash because the crowd has turned optimistic. The same Santiment chart shows that the better contrarian setup came on April 18, when the bullish-to-bearish ratio dropped to 0.59. This was deep in the FUD Zone, before Bitcoin mounted a recovery.
The bill was championed by major crypto companies, including Coinbase, Circle, and Ripple, all of which have sought a degree of regulation for the crypto industry. Senior figures linked to these companies also reacted positively on social media after the Senate Banking Committee advanced the legislation.
The bill still needs to be available for a vote from the full Senate, where 60 yes votes will be required. Projections from SoSoValue show a key window between mid-May and early August, with the House recess beginning July 27 and the Senate recess beginning August 10.
Clarity Act Legislative Process. Source: SoSoValue
Featured image from Unsplash, chart from TradingView
