Three red candles on Bitcoin's daily chart have triggered panic. However, analysts believe that macroeconomic changes could push $BTC to a new high in 2025.
Bitcoin's social sentiment reached its lowest point in 2024, perhaps paradoxically suggesting a major price breakthrough that could push the cryptocurrency back above the $100,000 mark.
As of around 10:30 on Monday, Bitcoin was trading at over $95,000, down more than 12% from its all-time high of $108,300 on December 17.
Sentiment decline and market analysis
The drop in sentiment on social media shows an average ratio of four positive comments about Bitcoin to five negative ones.
This drop in retail investor sentiment could paradoxically signal an impending Bitcoin breakthrough. Market research platform Santiment suggests that contrarian investors could benefit from the current fear, uncertainty and doubt (FUD) among traders.
Several analysts expect Bitcoin's correction below $100,000 to end soon. Remarkably, three red candles have appeared consecutively on Bitcoin's daily chart since December 20. This pattern has not been seen since early November, coinciding with Donald Trump's victory in the US election.
Fractal patterns and historical patterns
Price fractal patterns, which are used to identify key support and resistance levels, suggest that Bitcoin could recover before the end of 2024.
Analyst Elya Boom noted on Dec. 20 that emerging fractals suggest a potential near-term recovery above $100,000.
Looking ahead, then, the outlook for the Bitcoin price in 2025 is also optimistic.
According to crypto service provider Matrixport, improving macroeconomic conditions and easing global monetary policy could push the Bitcoin price above $160,000 by next year.
Thus, although Bitcoin is in a correction phase, low social sentiment and technical analysis suggest a potential trend reversal.