After several consecutive weeks of charting impressive gains, BTCâs price tumbled by 15% from top to bottom last week and has failed to produce a notable recovery.
The crowd has gone into a full Fear, Uncertainty, and Doubt (FUD) state, which could actually be beneficial for bitcoinâs upcoming price movements.
Crowd Hints at Recovery?
Just six days ago, the primary cryptocurrency was flying high above $100,000 and ever skyrocketed to its latest all-time high of just over $108,000. This put the gains following Trumpâs victory at roughly 60%. However, the landscape changed on Wednesday after the hawkish comments by Fed Chair Jerome Powell about fewer interest rate cuts for 2025.
In what turned out to be the worst trading week for BTC since Trumpâs win, the cryptocurrency dropped by 15% from the aforementioned peak to $92,000. Although it has managed to recover some ground, it still fails to bounce off in a manner similar to the previous corrections and is currently struggling to remain above $95,000.
According to the crypto analytics platform Santiment, this extended correction has made the crowd fearful as the overall sentiment was sent âdown to its most negative statistical point of the year.â However, this could be a blessing in disguise for BTC as the asset tends to move in the opposite direction of retail investorsâ expectations, said the report.
BTC Buy Signal?
Crypto analyst Ali Martinez outlined a potential âbuy signalâ for BTC after the correction due to the TD sequential on the 4-hour chart. The indicator identifies the exhaustion in either direction and typically pinpoints the beginning of a reversal.