Is Bitcoin Set For A $100K Rebound? Bearish Crowd also suggests

BTC's price action has been nothing short of a rollercoaster over the past week or so, and the volatile ride is expected to continue in the coming days, especially with Trump's inauguration imminent.

With Bitcoin losing a significant chunk of its weekly gains, the crowd is expected to turn bearish. However, this can be a blessing in disguise.

The bears are back

Microstrategy announced Monday its latest BTC purchase, the first time this year that the largest cryptocurrency market has topped $100,000 and topped $102,000. However, that rally was short-lived and the stock plummeted in the days that followed, at one point falling more than ten times in 48 hours.

Last Thursday, bitcoin fell to $91,250 (Bitstamp), the lowest price level since November 2024. The bulls finally snubbed his nose this time and refused to let it drop below $90,000, according to analysts.

Naturally, the public turned to depression in the wake of such a massive disaster, with the Fear and Greed Index returning to neutral on Friday for the first time since October. Such indicator volatility changes indicate a large move in either direction and indicate an upcoming move in the opposite direction.

Is this good news?

Crypto Analytics Resource Sentiment repeatedly points out that BTC tends to move in the opposite direction to public expectations. This means that in today's uncertain times when retail is entering social media, their cryptography proves to be wrong with a known price increase and vice versa.

Such was the case in early December 2024 when Bitcoin fell from over $100,000 to $90,000. In the following weeks, however, the asset reversed course and hit a new high above $108,000 on December 17.

Therefore, Santiment suggests that the recent events may be another hidden sign of brutality, especially if the public continues to be disillusioned with this.

Crypto has been a bit lower for traders in the past week, and we are seeing higher than usual statements to sell interest. As we saw in the Q4 bull rally, when the crowd starts to get too crowded, the higher prices become too much. pic.twitter.com/0U9qZky2ko

— Santiment (@santimentfeed) January 11, 2025