Bitcoin’s social sentiment has plummeted to its lowest level of 2024, with the balance of positive to negative comments now at a disheartening ratio of 4:5. Despite Bitcoin maintaining a position above $95,000, retail traders appear to be feeling increasingly gloomy. This shift in sentiment could signal a forthcoming breakthrough, as some contrarian analysts suggest that markets frequently move in opposition to retail perceptions. Historically, periods marked by heightened fear often precede price surges, which adds an intriguing layer to the current situation.
Recently, Bitcoin reached a high of over $108,000 on December 17 but has since dipped by more than 10%, currently hovering around $97,150. Analysts are hopeful, projecting that the cryptocurrency may stabilize and recover above $100,000. Historical chart patterns hint at chances for a rebound. For instance, Elja Boom, a respected analyst, observed fractal patterns on the daily chart indicating potential upward momentum. Conversely, analyst Rekt Capital warns that this correction may continue for another week, citing similarities to previous market behaviors in 2017 and 2021.
Despite the current downward trend, Bitcoin’s technical analysis reflects a consolidation within a larger upward trend. The recent market decline followed the Federal Open Market Committee (FOMC) meeting, which many interpret as a shakeout rather than a true reversal. Analyst CrypNuevo identified crucial support levels, especially around $85,000. Should Bitcoin break below this point, a more profound correction might ensue, potentially sinking to $72,000. However, the $90,000-$95,000 range has proven sturdy, with robust buying support emerging during price dips.
Looking ahead, there are two primary scenarios for potential recovery. The first is a W-formation, where Bitcoin could find solid support near $92,000 before breaking above $100,000. The second, and arguably more probable, scenario suggests Bitcoin testing the $90,000 level once more. Should this happen, analysts predict considerable buying momentum, which would likely push prices back upward. Keeping an eye on the 50-hour exponential moving average (EMA) can provide additional insights into whether this recovery is gaining strength.
While Bitcoin goes through this correction, long-term projections remain positive. Analysts forecast that improving macroeconomic conditions and relaxing global monetary policies may drive Bitcoin’s price past $160,000 by the end of 2025. Despite the fluctuations encountered in 2024, Bitcoin’s overall performance indicates it is still positioned for growth, and many feel optimistic about a rebound before the year wraps up.
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This piece is for informational purposes and should not be interpreted as financial advice. Always conduct your own research and analysis before making any significant financial decisions. The views expressed here are solely those of the author and do not reflect the opinions of CoinMarketCap.
