Bitcoin has historically trended inversely with social sentiment, and recent crowd bearish predictions could mark the market bottom.
The broader cryptocurrency market has been consistently making new lows this week, led by Bitcoin’s glaring price weakness. The pioneering cryptocurrency started at around $115,200 on Monday but has since tested a low of $111,135.
Social Sentiment Wither with Bitcoin Price
Notably, retail traders appear to be growing impatient with the bearish Bitcoin trend, according to data from Santiment. The market intelligence platform recently shared that social media is abuzz with claims that Bitcoin will see lower prices.
The FUD has again reached insane levels, with predictions of a Bitcoin drop to between $70,000 and $100,000 dominating the social space. This has trounced bullish outlooks of a rebound to $130,000 and $160,000, as sentiment mainly turns bearish.
Santiment highlighted that these bearish Bitcoin mentions and sub-$100k calls spotlight the heightened impatience among the retail crowd. While many believe it may spur selling pressure, the platform instead views it as an opportunity for smart money.
A Good Opportunity to Buy Bitcoin
Notably, Santiment highlighted that this might be a good opportunity to acquire Bitcoin. Playing contrarian to the market sentiment presents a fair entry point, allowing patient holders to buy the fears while small traders exit the market.
Moreover, prices have typically gone against crowd sentiments. Santiment identified instances where retail traders have increasingly called for a dip below $100,000, but prices have gone higher instead.
An instance was in early September, when retailers panicked as Bitcoin dropped to $107,200. They predicted further lows, targeting between $100,000 and $70,000, which dimmed calls of a rebound towards $130,000.
Remarkably, the price of Bitcoin rallied from the low to $118,000 before the recent correction. A similar occurrence could mark the bottom for Bitcoin, setting it up for an uptick to new heights.
What Does Bitcoin Technical Analysis Say?
Meanwhile, market analyst Captain Fabik identified Bitcoin’s current price action within a falling wedge on the 4-hour timeframe. BTC is now approaching the lower support, and a bounce could be on the horizon.
The market commentator noted that if Bitcoin bounces from the trendline, things could turn bullish quickly. He expects a rebound, breaking out of the falling wedge, to $117,500. Notably, the 5% growth from the current market price of $111,927 would mark a retest of the channel’s high, which, if successful, will pave the way for higher prices.