
Experts predict Bitcoin's return to its highs amid rising FUD sentiment
December 23, 2024
The sentiment index among Bitcoin traders has fallen to its lowest level in a year, which may signal a potential price recovery. After a 10% drop from the record high ($108,300), market pessimism has intensified: the ratio of negative to positive posts became 5:4 in favor of negative sentiment.
Such situations often precede growth. Historically, periods of FUD (fear, uncertainty, and doubt) end with a recovery and a strong upward surge.
Like Trump’s election: Is history repeating itself?
Analyst Eldja Boom pointed out the similarity of the current situation to the BTC dynamics seen before Donald Trump’s victory in the U.S. presidential election. At that time, the market also went through a period of strong uncertainty and declining sentiment, but soon after, there was a powerful recovery and price growth. Similar technical indicators on the daily chart of digital gold could suggest a near return of cryptocurrency to high levels.
Forecasts for the near future
Leading analysts are confident in the continuation of the bullish trend. For example, Bitfinex predicts a peak for the decentralized currency in Q3-Q4 2025 with a target price of $200,000, a goal also shared by Bitwise. However, K33 Research believes that the market could reach its peak as early as January 17, indicating a potential end to the bull run before a correction.
What does this mean for investors?
Current market sentiment and fundamental factors could provide the foundation for a new growth phase. In the world of cryptocurrencies, uncertainty is common, and it is during panic periods, when investors are fearful, that the best opportunities for long-term growth arise.
Against the backdrop of negative sentiment and predictions of Bitcoin’s recovery, it is crucial to keep an eye on the market. Price fluctuations are an inevitable part of cryptocurrencies, and those who remain strategic can benefit from future growth.