Bitcoin Social Sentiment Drops to 2024 Low
Social sentiment around Bitcoin has dropped to its lowest level in 2024, which could indicate a potential recovery above the $100,000 mark for the world’s largest cryptocurrency.
Bitcoin is currently down over 10% from its all-time high of $108,300 recorded on Dec. 17, trading at approximately $97,150 as of 12:38 pm UTC, according to TradingView data.
Following this 10% correction, social media sentiment around Bitcoin hit its lowest point this year, with an average ratio of four to five positive versus negative Bitcoin-related comments.
Market intelligence platform Santiment noted in a Dec. 22 X post that this low retail sentiment could signal an incoming breakout:
“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.”
Other crypto analysts are also forecasting the end of Bitcoin’s correction under $100,000.
On Dec. 20, Bitcoin’s daily chart showed three consecutive red candles for the first time since early November, a period that coincided with the lead-up to Donald Trump’s U.S. election victory.
Bitcoin fractal patterns suggest upward momentum, although another week of price declines may still occur.
Fractals, used in crypto trading to identify support, resistance, and potential trend reversals, point to a possible short-term recovery above $100,000, according to analyst Elja Boom in a Dec. 20 X post:
“We have seen this before.”
However, historical data shared by analyst Rekt Capital suggests the correction may continue. In a Dec. 21 X post, Rekt Capital wrote:
“In 2017, Week 7 as well as Weeks 8 and 9 were also corrective. In 2021, Week 6 and Week 8 were corrective. Bitcoin is currently in Week 7 and slowly transitioning into Week 8.”
Despite the current downtrend, Bitcoin’s price trajectory offers optimism for 2025.
Matrixport, a crypto services provider, projects that improving macroeconomic conditions and easing global monetary policy could drive Bitcoin above $160,000 before the end of next year.
Sources:
https://cointelegraph.com/news/bitcoin-social-sentiment-drops-yearly-low-signaling-btc-breakout
https://x.com/santimentfeed/status/1870703025322344731/photo/1
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