Bitcoin social sentiment has reached yearly lows as the price faces a correction, indicating a potential recovery above $100,000.

Social sentiment for Bitcoin has fallen to its lowest level in 2024, with the ratio of positive to negative comments falling to 4:5. Although Bitcoin held above $95,000, retail traders expressed significant pessimism. This decline in sentiment is seen as a potential sign that Bitcoin may soon boom, with contrarian analysts believing that markets often move against retail expectations. In the past, periods of heightened fear often preceded price hikes.

Bitcoin most recently peaked at over $108,000 on December 17 but has since fallen more than 10%, and is currently trading at around $97,150. Analysts It suggests that the cryptocurrency could recover above $100,000, as some historical chart patterns point to a potential recovery. Elja Boom, a famous analyst, noted that Bitcoin’s fractal patterns on the daily chart indicate upward momentum. However, other analysts, such as Rekt Capital, predict that the correction may last another week, referring to similar market conditions in past years, especially in 2017 and 2021.

Despite the short-term downtrend, Bitcoin technical analysis indicates that the price is consolidating within a larger uptrend. The latest market correction came after the Federal Open Market Committee (FOMC) meeting, where market reactions suggested this was a shakeout rather than a reversal. CrypNuevoAnother analyst pointed to key support levels, such as $85,000. If Bitcoin price falls below this level, it could lead to a deeper correction, possibly reaching $72,000. On the other hand, the $90,000-$95,000 range was a strong support level, with significant buying interest emerging during price declines.

Looking at potential recovery paths, there are two main scenarios. One of them involves the W formation, where Bitcoin could find support around $92,000 before pulling back above $100,000. The second scenario, which is considered more likely, could see Bitcoin test the $90,000 level again. If this happens, analysts expect strong buying pressure to push the price higher again. Monitoring the 50-hour Exponential Moving Average (EMA) can provide further clues as to whether the recovery is gaining momentum or not.

While Bitcoin is experiencing a correction, the long-term outlook remains optimistic. Analysts suggest that improving macroeconomic conditions and easing global monetary policies could push Bitcoin’s price above $160,000 by the end of 2025. Although 2024 has seen volatility, Bitcoin’s overall performance indicates that it remains on the growth trajectory, and many believe that the cryptocurrency could bounce back before then. The year ends.