Will Bitcoin Soar to $100K? Insights from the Skeptics!

The price movements for Bitcoin over the last week were nothing less than an exhilarating rollercoaster, and the unpredictable journey is anticipated to persist in the days ahead, particularly with Trump’s inauguration imminent.

As bitcoin shed a significant portion of its weekly gains, the audience has understandably adopted a bearish sentiment. Nevertheless, this might prove to be a blessing in disguise.

Bears Are Back IN Bitcoin

Following MicroStrategy’s announcement on Monday regarding its recent Bitcoin acquisition, the largest cryptocurrency by market capitalization surged past $100,000 and even exceeded $102,000 for the first time this year. However, this momentary relief rally was fleeting, and the asset plummeted severely in the subsequent days, dropping by over ten thousand dollars at one stage in less than 48 hours.

The peak of this decline occurred on Thursday when bitcoin fell to $91,250 (on Bitstamp), marking its lowest price point since late November 2024. At this juncture, the bulls managed to intervene and prevented any further slide below $90,000 despite several cautions from leading analysts.

Consequently, the audience shifted to a bearish mindset following such a significant drop, with the Fear and Greed Index reverting to neutral on Friday for the first time since October. Such swings in this metric typically indicate a significant movement in either direction and hint at a forthcoming shift in the opposite.

The cryptocurrency analytics platform Santiment has often indicated that Bitcoin typically behaves contrary to the expectations of the crowd. This implies that in times of uncertainty like now, when retail sentiments are turning bearish on social media, the cryptocurrency surprises them with a notable price increase and vice versa.

This was illustrated in early December 2024 when bitcoin dipped once more from above $100,000 towards $90,000. However, in the subsequent weeks, the asset reversed its course and even achieved a new all-time high exceeding $108,000 on December 17.

As a result, Santiment proposed that the recent developments could indicate another concealed bullish sign, especially if the audience continues to feel this pessimistic.

Crypto has been a slight let down for traders over the past week, and we have been seeing higher than usual mentions of selling interest. Just like we saw throughout the Q4 bull rally, when the crowd begins to get too bearish, higher prices become much more likely. pic.twitter.com/0U9qZky2ko

— Santiment (@santimentfeed) January 11, 2025