Bitcoin’s price actions took a turn for the better over the past few days, and the asset even came close to $100,000 yesterday evening as the crowd became highly bullish again.
However, it was stopped there and pushed south by a few grand amid reports of a growing number of investors realizing profits.
What Needs to Change
The analytics company Santiment has frequently reasserted the importance of the overall crowd expectations for the underlying asset’s prices. But, what happens is usually the opposite of the general anticipation.
The developments in the past 48 hours have only solidified their theory. BTC’s price went from around $94,000 on Christmas Eve to just shy of $100,000 yesterday evening, but its rally was halted at that point, and the asset is back to $98,000 now.
Santiment indicated that “traders are now swinging bullish once again, with speculations of $110K getting rampant.” Although this might sound bullish for bitcoin at first, the company reaffirmed its belief that the cryptocurrency tends to oppose what the majority expects by saying, “Historically, we will see $100K Bitcoin only after the crowd doesn’t expect it.”
Bitcoin has jumped to as high as $99.8K on a bullish Christmas crypto performance. Traders are now swinging bullish once again, with speculation of $110K getting rampant. Historically, we will see $110K Bitcoin only after the crowd doesn’t expect it, as this image shows. pic.twitter.com/j4w3VQ4Zio
— Santiment (@santimentfeed) December 26, 2024
Profit-Taking
During the market-wide correction that took place in the past week or so, in which BTC’s price tumbled hard from over $108,000 to $92,000, investors started to dispose of large portions of their stash. Data shared by Ali Martinez shows that on December 23 alone, they had realized more than $7 billion in bitcoin profits.
On December 23, more than $7.17 billion in #Bitcoin $BTC profits were realized. pic.twitter.com/Eve4OSnXQ3
— Ali (@ali_charts) December 26, 2024
The technical analyst further outlined $97,300 as a crucial support level for BTC, given the large number of investors who had purchased roughly 1.5 million BTC there. He noted that 1.51 million wallets have spent nearly $150 billion to turn that level into support now. Usually, when new investors see their positions go into red, they tend to start panic selling, which is why it’s important for BTC to remain above $97,300.
The most significant support level for #Bitcoin is at $97,300, where 1.51 million wallets bought around 1.49 million $BTC. pic.twitter.com/hDnBnhwMZw
— Ali (@ali_charts) December 25, 2024
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