On December 25, Bitcoin (BTC) hinted at a potential 'Santa Rally' as its price attempted to reclaim the $100,000 milestone. However, this price surge fell short of the target, leaving short-term holders doubtful about a near-term recovery.
Will this Cryptocurrency continue to trade below the six-figure threshold?
Market Sentiment Surrounding Bitcoin is Bearish
Bitcoin's failure to recover to $100,000 has pushed its price below $97,000 and negatively impacted its market position. But the bearish sentiment doesn't stop there.
According to IntoTheBlock, the Holding Time Address metric, which tracks the activity of Bitcoin holders over a period of 30 to 365 days, has shown a significant decline in the past week.
This group, often referred to as short-term holders, plays a crucial role in reflecting market sentiment. An increase in this group typically signals rising optimism, but the recent decline suggests that investor confidence is waning.
Bitcoin Holding Time Address. Source: IntoTheBlock
If this trend continues, it could indicate prolonged bearish pressure on Bitcoin's value in the short term.
Another indicator that reinforces this sentiment is the Realized Profit/Loss of Short-Term Holders (STH-NUPL). STH-NUPL measures the behavior of investors who have held the coin for less than 155 days.
With this data, it is possible to determine whether short-term Bitcoin investors are optimistic, fearful, or greedy. According to Glassnode, this index has dropped into the hope or fear zone (orange), indicating that investors are doubtful about a significant recovery of BTC. If this does not change, BTC may struggle to attract enough demand to push the price higher.
Realized Profit/Loss of Bitcoin Short-Term Holders. Source: Glassnode
BTC Price Forecast: Below $90,000 Next?
On the daily chart, Bitcoin's price has faced resistance at $99,332. This barrier is one of the reasons this Cryptocurrency has been unable to rise to $108,398. With this setback, Bitcoin's recovery may continue to be hindered in the short term.
Additionally, the Relative Strength Index (RSI) has fallen below the neutral level of 50.00. This decline indicates that the momentum around BTC has shifted to bearish. If this situation continues, the coin risks dropping to $85,851.
Daily Bitcoin Analysis. Source: TradingView
However, if the bulls can help BTC break through the resistance level of $99,332, the trend could change. In that scenario, the price of Bitcoin could approach $110,000.
