Santiment identifies the best periods to buy, hold and sell Bitcoin with prices falling to $94k

Crypto behavior resource Santiment highlights the ideal periods to buy, hold and trade and Selling Bitcoin amid the ongoing decline.

Bitcoin news todayFor context, this pullback has caused losses for Bitcoin in five of the past six trading days. The leading cryptocurrency asset has fallen 13% from its all-time high of $108,300, and is now trading at around $94,000. It is worth noting that the collapse led to a similar decline in the broader market.

Amid this volatility, Santiment did Highlight On the conditions driving these market movements. She noted that investor sentiment, characterized by the behavior of small traders and large portfolios, often dictates Bitcoin’s path.

Retail investors, who constitute the majority, tend to buy when prices reach their peaks and sell during their troughs. This pattern favors big players like whales and sharks, who accumulate assets during panic selling.

The classic example is fallout FTX explosion in late 2022, sparking widespread fears of Bitcoin’s demise. Retail panic has reached unprecedented levels, leading to an increase in negative mentions of Bitcoin across social media platforms such as Reddit and Telegram. However, this period of intense fear preceded a major rally.

Santiment suggests when to buy, hold and sell

Citing these reactions to sentiment trends, Santiment identified two main groups driving market movements. These groups are Whales and sharks And retailers. Investors looking to invest in Bitcoin should take into account the behaviors of these levels of coin holders.

Whales and sharks are wallets holding 10 BTC or more, making up the most influential stakeholders. These entities tend to accumulate during bearish phases and sell when the markets heat up.

Meanwhile, Retailers They are the majority of small traders, who often follow emotional and herd-like behaviour, buying high and selling low. The data indicates that it is better Opportunities to profit They arise when traders act contrary to the crowd.

Accumulating during widespread fear – such as during the FTX crash or similar events – has historically led to large gains. This represents the perfect time to enter the Bitcoin market.

However, Santiment noted that it’s best to hold on to it while you’re at it Accumulation periods By whales. On the other hand, they suggested that investors could consider selling when speculative enthusiasm reaches irrational levels, such as during the meme coin craze.

Bitcoin reacts to the latest sentiment trends

In the current bull cycle, Santiment has drawn attention to these patterns. In particular, in late November 2024, after Bitcoin Rising to $98,000 After Trump won re-election, retailers became concerned about a drop to $90,000.

some until Plans to buy when BTC drops to the $90,000 area have been constantly revealed. However, Bitcoin defied expectations, rising above $103,000 in early December after several failed attempts to break the $100,000 barrier.

As expected, this rapid rise sparked a case of FOMO, with many traders anticipating a quick rise to $110,000. Instead, the market moved in the opposite direction to these expectations. Notably, so was Bitcoin revision to $96,000 by December 10.

However, the rally resumed as bullish sentiment faded, peaking at New all-time high at $108,300 On December 17. This recovery push once again sparked bullish comments, with investors anticipating the rally to reach the $110,000 level. However, Bitcoin has since collapsed, leading to a continued decline.

The cryptocurrency asset is currently trading at $94,278 now 13% below its all-time high. This is due to a combination of profit taking and external factors. Tough statements from Federal Reserve Chairman Jerome Powell increased market tension. However, now that Bitcoin is down, the prevailing feeling is that another drop below $90,000 could occur. This may be a precursor to recovery.