Bitcoin (BTC) is likely headed towards a recovery season before finally soaring above $100,000. Historical chart patterns suggest that this might be the case after the social sentiment around the leading cryptocurrency by market capitalization recently hit a low. Noteworthy, this is the lowest that this metric has gotten to since the beginning of 2024.
Low Retail Investors’ Sentiment in Bitcoin Market
The social sentiment went to an average ratio of four to five positive versus negative Bitcoin-related comments.
In other words, there are fewer positive Bitcoin-related statements than negative ones. At Santiment, a blockchain analytics platform, analysts believe such low retail investor sentiment could signal an incoming Bitcoin breakout.
In its December 22 post on X, Santiment wrote, “Vocal traders are now showing severe FUD, and that’s good news for contrarians who know markets move in the opposite direction of retail’s expectations.”
More Analysts Expect Bitcoin Price Correction
Comparatively, Santiment is not alone in this, as other analysts and market experts expect a price correction for Bitcoin.
The coin’s daily chart produced three consecutive red candles for the first time since the first week in November. Recall that this was when the United States presidential elections were held, and Republican politician Donald Trump won.
In an earlier post, popular analyst Elja Boom wrote that Bitcoin could be set to recover above $100,000 in the short term. He based his expectation on emerging fractals on the daily chart while adding that such a trend has happened before.
Bitcoin Trades Below $97,000
According to CoinMarketCap data, BTC’s price has decreased by approximately 11.32% from its all-time high (ATH) of $108,000, which it accomplished on December 17. The coin currently trades at $95,751.75 after losing 6.87% of its 24-hour price gain. The anticipated recovery could come before the end of the year or not.
However, crypto analyst Rekt Capital sees the possibility of the correction extending by another week. To give credence to this prediction, the analyst shared an instance in 2017 when Week 7 and Weeks 8 and 9 were corrective. Another example is 2021, when Week 6 and Week 8 were corrective.
