Is Bitcoin Poised for a $100,000 Bounce? The bearish crowd suggests it

BTC price action over the past week has been a complete rollercoaster ride, and the volatile ride is expected to continue in the coming days, especially with Trump’s inauguration around the corner.

With bitcoin losing a substantial portion of its weekly gains, the crowd is expected to have turned bearish. However, this could be a blessing in disguise.

The bears are back

Following MicroStrategy’s announcement on Monday of its latest BTC purchase, the largest cryptocurrency by market cap soared above $100,000 and beyond $102,000 for the first time this year. However, this relief rally was short-lived and the asset plunged hard in the following days, dropping more than ten thousand euros at one point in less than 48 hours.

The culmination came on Thursday when bitcoin fell to $91,250 (on Bitstamp), which became its lowest price level since late November 2024. The bulls finally intercepted the plunge in this moment and did not allow a further drop below $90,000 despite multiple warnings from prominent. analysts

Naturally, the crowd turned bearish after such a massive crash, with the fear-greed index returning to neutral on Friday for the first time since October. These fluctuations in the metric usually show a large move in either direction and suggest an upcoming move in the opposite direction.

Crypto Fear and Greed Index. Source: alternative.me Is this good news?

Crypto analytics resource Santiment has often suggested that BTC tends to move in the opposite direction of the crowd’s expectations. This means that in times of uncertainty similar to the current one, when retail sales are falling on social media, the cryptocurrency proves them wrong with a noticeable price increase and vice versa.

This was the case in early December 2024, when bitcoin fell again from over $100,000 to $90,000. In the following weeks, however, the asset reversed course and even hit a new all-time high of over $108,000 on December 17.

Consequently, Santiment suggested that the latest developments could be another hidden bullish sign, especially if the crowd remains so pessimistic.

Crypto has been a slight disappointment for traders over the past week, and we’ve been seeing higher than usual mentions of selling interest. As we saw during the Q4 bull rally, when the crowd starts to get too bearish, higher prices are much more likely. pic.twitter.com/0U9qZky2ko

— Santiment (@santimentfeed) January 11, 2025

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