Bitcoin’s price has dropped by over 10% from its all-time high of $108,300 in December 2023, trading at around $95,321. Despite this, social media sentiment around the cryptocurrency has reached a low point in 2024, with a ratio of four to five positive comments for every negative one.
However, market analysts believe that this low sentiment could be a sign of an impending recovery above the $100,000 mark. Santiment, a market intelligence platform, noted that “vocal traders are now showing severe FUD [fear and uncertainty]… and that’s good news for contrarians who know markets move in the opposite direction of retail’s expectations.”
Other analysts, including Elja Boom, also predict a recovery in Bitcoin’s price. They point to fractal patterns on the daily chart, which suggest upward momentum and potential trend reversals. According to Boom, “we have seen this before,” referencing similar patterns in historical data.
However, Rekt Capital notes that Bitcoin’s correction may extend another week, citing past trends where Weeks 7 and 8 were also corrective periods. Despite this, improving macroeconomic conditions and easing global monetary policy could support a price trajectory above $160,000 by the end of 2025, according to Matrixport.
Overall, while there are differing opinions on Bitcoin’s future direction, market analysts agree that the cryptocurrency is due for a recovery, driven by factors such as improved macroeconomic conditions and easing monetary policy.
Source: https://cointelegraph.com/news/bitcoin-social-sentiment-drops-yearly-low-signaling-btc-breakout