Bitcoin went from a new all-time high to a drop below $113,000 in a few days, and retail investors have turned bearish. Here’s what it means for prices.
BTC reached a new all-time high above $124,000 just last week. Less than seven days later, the pioneering cryptocurrency is down 8.5% from the price mark, losing crucial support areas.
Retail Traders Lose Interest in Bitcoin
Amid the steep correction, data from Santiment shows that retail traders have moved with the market flow. The report, shared on Wednesday, reveals that the crowd has given up on Bitcoin, following its brief dump below $113,000.
In the past 24 hours, retail investors have held the most bearish sentiment about Bitcoin on social media in almost two months. Santiment highlights that the last time such a strong negative bias occurred was on June 22, when the US targeted airstrikes against Iran over the Israel conflict.
An accompanying chart highlighting the positive and negative sentiment ratio shows that we have entered the “crowd fear” territory. This area comes with panic selling among retailers and impatient whales, confirmed by the increased sell pressure seen recently.
Crowd Fear: A Good Sign for Bitcoin Price
Nonetheless, this heightened pessimistic sentiment has historically proven to be a good opportunity either for bulls to add to their positions or for new market entrants. Santiment insisted that such market conditions signal that a good rebound is imminent for Bitcoin.
The analytical provider encouraged patient traders to buy where there is blood in the streets, a famous quote tied to financial expert Nathan Rothschild. It noted that the market historically moves in the opposite direction of the crowd’s expectation, implying that a market resurgence is almost underway.
Notably, Bitcoin’s reaction to a similar occurrence two months back further strengthens this narrative. For context, BTC bottomed at $98,330 on June 22 when retail turned extremely bearish. However, it rebounded 26% from the dip to its current all-time high before this downtrend.
Here’s Where Bitcoin Could Go Next
Moreover, bullish long-term outlooks among industry leaders continue to emerge for Bitcoin, with some expecting much higher prices before the end of the year. Canary Capital CEO Steve McClurg says there is a 50% chance that Bitcoin reaches $150,000 this year, with some other projections insisting on $200,000.
Some others are more bullish, predicting a huge bullish foray to $600,000. Analyst AO shared this sentiment, tapping the correlation between BTC and gold as the basis for this expectation.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
