As a seasoned crypto investor with a decade of experience under my belt, I’ve seen enough market fluctuations to know that Bitcoin‘s behavior is often unpredictable and counter-intuitive. The recent spike in BTC‘s price towards $100,000 was no exception, as it was halted at the brink, seemingly by an invisible hand.
Over the last few days, Bitcoin’s price trend has improved significantly, approaching nearly $100,000 in value during the late evening hours, sparking renewed optimism among investors.
Yet, it halted there and moved southward due to some substantial funds, as more investors were reportedly cashing in their gains.
What Needs to Change
As a cryptocurrency investor, I’ve often noticed that the predictions made by analytics companies like Santiment, emphasizing the influence of overall crowd expectations on asset prices, tend to be flipped on their head. Instead of prices rising or falling as expected by the majority, it’s quite common for them to move in the opposite direction.
Over the last two days, these recent events have provided stronger evidence for their hypothesis. Initially, Bitcoin’s price soared from approximately $94,000 on Christmas Eve to nearly $100,000 by last night, but its upward trend came to a halt at that point, and currently, the value is back around $98,000.
As a researcher, I’ve noticed Santiment’s recent findings suggesting a resurgence of bullish sentiment among traders regarding Bitcoin, with predictions of $110K becoming increasingly common. However, it’s important to note that Santiment also emphasized their belief that Bitcoin historically tends to deviate from the majority’s expectations. In other words, we might not see $100K Bitcoin until the crowd stops anticipating it.
Bitcoin has soared to a peak of $99,800 during a bullish Christmas season for cryptocurrencies. Traders are becoming increasingly optimistic again, with whispers of Bitcoin potentially reaching $110,000 growing louder. Historically, we’ve only seen Bitcoin at $110,000 when it catches people off guard, as this chart illustrates.
— Santiment (@santimentfeed) December 26, 2024
Profit-Taking
Over the past week or so, a significant market-wide correction occurred, causing Bitcoin’s price to plummet from approximately $108,000 down to $92,000. As a result of this drop, investors found themselves selling substantial amounts of their Bitcoin holdings. According to data provided by Ali Martinez, over $7 billion in bitcoin profits were realized on December 23 alone.
On December 23, more than $7.17 billion in #Bitcoin $BTC profits were realized.
— Ali (@ali_charts) December 26, 2024
The technical expert highlighted the significant level of $97,300 as a crucial point of support for Bitcoin (BTC), due to approximately 1.5 million investors having bought their holdings there. He explained that these 1.51 million digital wallets have invested around $150 billion collectively, making this level robust support. In typical market scenarios, when new investors see losses in their positions, they may begin to panic sell. Therefore, it’s essential for BTC to maintain its value above $97,300 to avoid such selling pressure.
The key resistance point for Bitcoin lies at approximately $97,300, a price range that represents the purchase of about 1.49 million Bitcoins by 1.51 million different wallets.
— Ali (@ali_charts) December 25, 2024
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2024-12-26 10:33