Bitcoin price actions have improved in recent days, with the asset even approaching $100,000 yesterday afternoon as the crowd became very bullish again.
However, it stopped there and was pushed south by a few thousand dollars amid reports that a growing number of investors made profits.
What needs to change
Analytics firm Santiment has frequently reaffirmed the importance of the public’s general expectations about underlying asset prices. But what happens is usually the opposite of what was expected.
The events of the last 48 hours have only solidified his theory. The price of BTC went from around $94,000 on Christmas Eve to just under $100,000 yesterday afternoon, but its rally stopped at that point, and the asset is back to $98,000 now.
Santiment noted that “traders are now turning bullish once again, with $110,000 speculation becoming more rampant.” Although this may seem bullish for Bitcoin at first, the company reaffirmed its belief that the cryptocurrency tends to go against what the majority expects by saying: “Historically, we will see $100,000 in Bitcoin only when the majority does not expect it.”
Bitcoin has jumped as high as $99.8K thanks to a bullish Christmas crypto performance. Traders are now turning bullish once again, with $110,000 speculation becoming more widespread. Historically, we will see $110,000 Bitcoin only when people don’t expect it, as this image shows. pic.twitter.com/j4w3VQ4Zio
– Sentiment (@santimentfeed) December 26, 2024
taking profits
During last week’s market-wide correction, which saw the price of BTC drop sharply from over $108,000 to $92,000, investors began dumping large portions of their reserves. Data shared by Ali Martinez shows that on December 23 alone, they made over $7 billion in bitcoin profits.
On December 23, more than $7.17 billion in #Bitcoin $BTC benefits were obtained. pic.twitter.com/Eve4OSnXQ3
– Ali (@ali_charts) December 26, 2024
The technical analyst further described $97,300 as a crucial support level for BTC, given the large number of investors who had purchased approximately 1.5 million BTC there. He noted that 1.51 million wallets have spent almost $150 billion to turn that level into support now. Typically, when new investors see their positions going into the red, they tend to start panic selling, so it is important for BTC to stay above $97,300.
The most significant support level for #Bitcoin is at $97,300, where 1.51 million wallets bought about 1.49 million $BTC. pic.twitter.com/hDnBnhwMZw
– Ali (@ali_charts) December 25, 2024
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