Social sentiment for bitcoin falls to an all-time low, indicating a breakout

The fact that social opinion about Bitcoin has reached its lowest position since 2024 may portend an impending rebound for the biggest cryptocurrency in the world above $100,000.

According to Cointelegraph data, the price of bitcoin is currently above $97,150 at 12:38 PM UTC, down more than 10% from its peak of over $108,300 on December 17.

Following the 10% correction, the average ratio of favorable to negative Bitcoin-related comments on social media dropped to its lowest level since 2024.

However, market analytics firm Santiment stated in a post on X on December 22 that this low mood among retail investors might be an indication of an impending Bitcoin breakout:

"The good news for contrarians who know that markets move against retail's expectations is that vocal traders are now displaying severe FUD."

Other cryptocurrency specialists anticipate that Bitcoin's drop will stop below $100,000. For the first time since the first week of November, which also happened to be the time leading up to Donald Trump's victory in the US election, Bitcoin's daily chart displayed three consecutive red candles on December 20.

Related: As Bitcoin approaches 130% year-to-date returns, corporate executives sell stock at historic highs.

Although Bitcoin fractals indicate rising momentum, the decline is still ongoing after another week.
Price fractal patterns, which are employed in cryptocurrency trading to identify important support and resistance levels as well as possible trend reversals based on historical data, suggest that Bitcoin may be preparing for a rebound before the end of 2024.

In a Dec. 20 X post, well-known analyst Elja Boom predicted that Bitcoin would soon rise above $100,000 based on new fractals that appeared on the daily chart:

"This is nothing new to us."

However, historical data provided by cryptocurrency analyst Rekt Capital suggests that Bitcoin's drop could last for another week. Rekt Capital noted in a post on X on December 21:

Weeks seven, eight, and nine of 2017 were also corrective. Weeks 6 and 8 of 2021 were corrective. At the moment, Bitcoin is in Week 7 and is gradually moving into Week 8.

However, the direction of Bitcoin's price shows promise for 2025. According to cryptocurrency services firm Matrixport, the price of Bitcoin may rise above $160,000 before the end of the year due to improving macroeconomic conditions and loosening global monetary policy.

The above content is excerpted from COINTELEGRAPH, an article by Zoltan Vardai.

From the above content, we can understand:

Bitcoin’s recent social sentiment has reached its lowest point of 2024, according to data from Santiment. This could signal a potential breakout for the cryptocurrency, as a decline in positive sentiment is often followed by upward price movement. The price of Bitcoin has dropped over 10% from its all-time high of $108,300, currently trading around $97,150. Despite this correction, analysts suggest that Bitcoin may be nearing the end of its downtrend, with a potential recovery above $100,000 in the short term.

The drop in social sentiment, where negative comments significantly outweigh positive ones, could indicate that the retail investor community is losing confidence in the asset. Historically, when this happens, the market tends to move in the opposite direction of retail expectations, which is why contrarians see this as a bullish sign. This pattern is consistent with previous market behaviors where low sentiment is followed by a recovery.

However, some analysts believe the correction may persist for another week, with Bitcoin’s price trajectory showing signs of further downward pressure before any potential rebound. Despite this, the long-term outlook remains optimistic. Bitcoin is seen as a strong asset with increasing institutional interest, and improving macroeconomic conditions could push its price to new heights in 2025.

Overall, while Bitcoin’s price correction may be uncomfortable for some investors, the combination of low social sentiment and historical price patterns suggests that a breakout could be imminent, making this an interesting period for Bitcoin watchers.