A significant number of retail investors are predicting that the price of Bitcoin will exceed $90,000 in the near future, which would turn the year-to-date return from negative to positive. However, it remains to be seen whether the market will follow this trend. According to Santiment, a firm that analyzes crypto social media posts, the majority of comments over the past week have been bullish, with many expecting the price to rise above $90,000.
The mention of lower price ranges, such as $50,000-$59,000, is being dismissed as fear, uncertainty, and doubt. The crowd's expectations are likely influenced by the recent recovery from the February low of around $60,000 and the resilience of Bitcoin despite various global events. However, Santiment warns that this bullishness could be a reason to be cautious, as overly optimistic social sentiment can often be a contrarian indicator for a potential bearish performance.
This is in line with the philosophy of contrarian traders, who use sentiment gauges to inform their investment decisions. Interestingly, the recovery rally has already stalled this week, with prices pulling back to $77,000 from highs above $79,000 on Monday, leaving it uncertain whether this is a pause or the start of a broader reversal.