Bitcoin Social Sentiment Hits 2024 Low, Hinting at Potential Breakout

Social sentiment surrounding Bitcoin has dropped to its lowest point this year, sparking speculation of a possible price recovery. Bitcoin, the world’s largest cryptocurrency, is currently trading above $97,150, down more than 10% from its all-time high of $108,300 reached on December 17.

While the recent correction has dampened retail sentiment, some analysts believe this could signal a major breakout, potentially pushing Bitcoin back above the $100,000 mark.

Bitcoin Low Sentiment Points to Contrarian Opportunity

Market intelligence platform Santiment highlighted the sharp drop in Bitcoin’s social sentiment, noting an average ratio of four to five positive versus negative Bitcoin-related comments on social media. In a December 22 post, Santiment stated, “Vocal traders are now showing severe FUD, and that’s good news for contrarians who know markets move in the opposite direction of retail’s expectations.”

Crypto analysts are also closely monitoring Bitcoin’s price patterns. The cryptocurrency recently recorded three consecutive daily red candles, a trend last seen in early November. This pattern often precedes significant market movements, according to historical price fractals used to predict trend reversals.

Recovery Expected Before Year-End

Despite the ongoing correction, analysts remain optimistic about Bitcoin’s outlook. Crypto strategist Rekt Capital noted that Bitcoin’s price history suggests corrections lasting into the eighth or ninth week, placing the market near the end of its current downtrend.

Looking ahead, improving global economic conditions and easing monetary policies could support Bitcoin’s price. Crypto services provider Matrixport predicts Bitcoin could surge above $160,000 by the end of 2025, offering hope for a strong rebound in the near future.

Bitcoin’s current low social sentiment, combined with historical patterns, suggests a potential breakout, creating a critical opportunity for traders and investors. Despite lingering uncertainty in the market, such conditions often precede significant price movements. Low sentiment typically reflects cautious or negative market sentiment, but historically, these phases have aligned with pivotal turning points for Bitcoin’s trajectory. This makes the present moment particularly compelling for those monitoring the cryptocurrency’s behavior.