Economist Henrik Zeberg believes that the current market conditions provide an opportunity for a significant breakout in Bitcoin (BTC). Zeberg, with a following of 173,900 on the social media platform X, suggests that the low market sentiment may indicate that the bottom for Bitcoin and other digital assets is near.
According to Zeberg, BTC reached its all-time high on January 20th and has been in a correction since then. He believes that sentiment is currently very low, resulting in massive destruction among alternative cryptocurrencies. However, Zeberg argues that this negative sentiment could be the catalyst needed for the market to move higher.
Despite the recent dip in Bitcoin’s price, Zeberg believes that the top is not yet in for the current crypto cycle. He dismisses the notion that a 1.5% drop in BTC’s price over the week constitutes a full-blown crash.
Meanwhile, analytics firm Santiment reports that market sentiment for Bitcoin is still relatively high based on social media mentions. The firm notes that more retail traders are returning to Bitcoin after the collapse of alternative cryptocurrencies. Santiment is optimistic about BTC’s future, citing potential pro-crypto policies expected from President Donald Trump’s administration.
Santiment suggests that the high retail sentiment towards Bitcoin is due to its status as a relative “safe haven” while altcoins have experienced significant retracement. The firm also points out that historical price movements have often been in the opposite direction of crowd expectations. However, Santiment acknowledges that a further retrace may be needed for small traders to overreact and engage in panic selling.
Despite the emotional rollercoaster of the crowd, Santiment believes that the positive indicators for a bullish long-term crypto future, including continued accumulation by key stakeholders, play a more significant role in determining the next moves in the crypto market.
As of the time of writing, Bitcoin is trading at $96,622, with no change in price for the day.
Source: Santiment/X
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