Is Bitcoin Poised for a $100K Rebound? Bearish Crowd Suggests So

The worth actions for BTC prior to now week or so have been nothing in need of a full-on rollercoaster, and the unstable trip is predicted to proceed within the following days, particularly with Trump’s inauguration simply across the nook.

With bitcoin dropping a considerable chunk of its weekly good points, the gang has expectedly turned bearish. Nonetheless, that could possibly be a blessing in disguise.

Bears Are Again

Upon MicroStrategy’s Monday announcement about its newest BTC buy, the biggest cryptocurrency by market cap skyrocketed to over $100,000 and past $102,000 for the primary time this yr. Nonetheless, that reduction rally was short-lived and the asset slumped arduous within the following days, dumping by greater than ten grand at one level with out 48 hours.

The fruits got here on Thursday when bitcoin dumped to $91,250 (on Bitstamp), which grew to become its lowest worth degree since late November 2024. The bulls lastly intercepted the nosedive at this level and didn’t permit an additional decline under $90,000 regardless of a number of warnings by distinguished analysts.

Naturally, the gang turned bearish following such an enormous crash, with the Concern and Greed Index going again to impartial on Friday for the primary time since October. Such fluctuations for the metric sometimes showcase a giant transfer in both route and recommend an upcoming transfer within the reverse.

Is That Good Information?

The crypto analytics useful resource Santiment has often advised that BTC tends to maneuver in the other way of the gang’s expectations. Which means that in occasions of uncertainty just like now when retail goes bearish on social media, the cryptocurrency proves them mistaken with a notable worth surge and vice versa.

Such was the case in early December 2024 when bitcoin tumbled once more from over $100,000 towards $90,000. Within the following weeks, although, the asset reversed its trajectory and even registered a brand new all-time excessive of over $108,000 on December 17.

Consequently, Santiment advised that the newest developments could possibly be one other hidden bullish signal, particularly if the gang stays this pessimistic.

Crypto has been a slight let down for merchants over the previous week, and we have now been seeing larger than traditional mentions of promoting curiosity. Identical to we noticed all through the This fall bull rally, when the gang begins to get too bearish, larger costs grow to be more likely. pic.twitter.com/0U9qZky2ko

— Santiment (@santimentfeed) January 11, 2025