Bitcoin's social sentiment has dropped to its lowest point of 2024, with the ratio of positive to negative comments falling to 4:5. Despite Bitcoin holding steady above $95,000, retail traders have expressed significant pessimism. This decline in sentiment is seen as a potential sign that Bitcoin might soon break out, as contrarian analysts believe markets often move opposite to retail expectations. In the past, periods of heightened fear have often preceded price rallies.
Bitcoin recently peaked at over $108,000 on Dec. 17 but has since fallen by more than 10%, currently trading around $97,150. Analysts suggest the cryptocurrency could recover above $100,000, as some historical chart patterns indicate a possible rebound. Elja Boom, a popular analyst, noted that Bitcoin’s fractal patterns on the daily chart hint at upward momentum. However, other analysts, like Rekt Capital, predict that the correction could last another week, referencing similar market conditions in past years, particularly in 2017 and 2021.
Despite the short-term downward trend, Bitcoin’s technical analysis suggests the price is consolidating within a larger uptrend. The recent market correction came after the Federal Open Market Committee (FOMC) meeting, where market reactions suggested this was a shakeout rather than a reversal. CrypNuevo , another analyst, pointed to key support levels, such as $85,000. If Bitcoin falls below this, it could lead to a deeper correction, possibly down to $72,000. On the other hand, the $90,000-$95,000 range has been a strong support level, with significant buying interest emerging during price dips.
Looking at potential recovery paths, there are two main scenarios. One involves a W-formation, where Bitcoin could find support around $92,000 before pushing back above $100,000. The second scenario, considered more likely, could see Bitcoin testing the $90,000 level again. If this occurs, analysts expect strong buying pressure to drive the price back up. Monitoring the 50-hour exponential moving average (EMA) could offer further clues as to whether the recovery is gaining momentum.
While Bitcoin is amid a correction, longer-term projections remain optimistic. Analysts suggest that improving macroeconomic conditions and easing global monetary policies could push Bitcoin’s price above $160,000 by the end of 2025. Although 2024 has seen fluctuations, Bitcoin’s overall performance suggests that it remains on a growth trajectory, and many believe the cryptocurrency could bounce back before the year ends.
