The general public has made its prediction: the price of Bitcoin, currently at $76,556.98, is expected to rise above $90,000 in the near future, potentially turning this year's negative returns into positive ones. However, it remains uncertain whether the market will follow this trend.
Analytics firm Santiment analyzed thousands of social media posts across various platforms, including X, Reddit, and Telegram, and found a significant bias towards Bitcoin's price exceeding $90,000 over the past week. Discussions about prices in the $50,000-$59,000 range are being dismissed as fear, uncertainty, and doubt.
The crowd expects the slow recovery from the February low of around $60,000 to continue into May, which seems reasonable given the recent inflows into exchange-traded funds and Bitcoin's resilience in the face of various global challenges. This widespread bullish sentiment, however, is precisely why Santiment advises caution. The firm suggests that price predictions can often indicate the opposite outcome, implying that overly bullish social sentiment may precede a bearish performance. This concept is echoed in traditional markets, where contrarian traders use sentiment gauges like the AAII Investor Sentiment Survey and the CNN Fear & Greed Index.
Interestingly, Bitcoin's recovery rally has already shown signs of stalling, with prices retreating to $77,000 from highs above $79,000 on Monday, leaving it uncertain whether this is a temporary pause or the beginning of a broader reversal.