Bitcoin Social Sentiment Drops To Annual Low, Signaling BTC Breakout
Social sentiment around Bitcoin has hit its lowest point in 2024, which could signal a recovery for the world's largest cryptocurrency to break above the $100,000 mark.
Bitcoin (BTC) price is down more than 10% from an all-time high of $108,300 hit on December 17, trading above $97,150 as of 12:38 pm UTC, according to Cointelegraph data.
BTC/USD 1-Month Chart. Source: Cointelegraph
Following the 10% correction, social media sentiment around Bitcoin fell to its lowest level in 2024, falling to an average of four to five positive and negative Bitcoin-related comments.
However, this low retail investor sentiment could be a sign of an earnings breakout for Bitcoin, market intelligence platform Sentiment wrote in a December 22 X post:
“Voice traders are showing serious FUD right now, and that's good news for contrarians who know markets are moving in the opposite direction from retail expectations.”
BTC social media sentiment, opinion ratio. Source: Santiment
Other crypto analysts are expecting Bitcoin's correction to end below $100,000. On December 20, Bitcoin's daily chart produced three consecutive red candles for the first time since the first week of November, which coincidentally was the lead-up to Donald Trump's US election victory.
Related: Corporate execs sell stocks as Bitcoin nears 130% YTD returns
Bitcoin's Fractals Point to Upward Momentum, But Another Week of BTC's Downtrend Is Still in Play
Based on price fractal patterns used in crypto trading to identify key support and resistance levels and potential trend reversals based on historical data, Bitcoin may be setting up for a recovery before the end of 2024.
Based on fractals emerging on the daily chart, Bitcoin could be set to recover above $100,000 in the short term, noted analyst Elja Boom on December 20, 2009.
“We've seen this before.”
BTC/USD, 1-day chart, fractals. Source: Elja Boom
However, based on historical data shared by crypto analyst Rect Capital, who wrote in a December 21 X post, Bitcoin's correction may extend another week.
“In 2017, week 7 as well as week 8 and 9 were also corrections. In 2021, there were week 6 and week 8 corrections. Bitcoin is currently in its 7th week and will gradually move towards its 8th week.
BTC/USD, price discovery phase. Source: Rect Capital
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However, Bitcoin's price journey shows signs of optimism for 2025. Improving macroeconomic conditions and an easing of global monetary policy could push Bitcoin's price above $160,000 before the end of next year, crypto service provider Matrixport said.
Micro Strategy How To Buy Bitcoin – Explained In Less Than 3 Minutes. Source: YouTube
Magazine: BTC correction ‘almost over' says Hayley Welch and more: Hodler's Digest, December 15 – 21
