A recent analysis of social media posts reveals that the majority of retail investors expect bitcoin's price to exceed $90,000 in the near future, which would turn the year-to-date return positive. However, according to analytics firm Santiment, this widespread bullishness may be a cause for concern. The firm's scan of thousands of crypto-related posts across various platforms found a significant skew towards predictions of bitcoin's price surpassing $90,000, with mentions of lower price ranges being dismissed as fear, uncertainty, and doubt. This trend is consistent with the crowd's expectation of a continued recovery from the February low of around $60,000.
Nevertheless, Santiment warns that such bullishness can be a contrarian indicator, suggesting that the opposite outcome may occur. This is in line with the philosophy of contrarian traders, who often use sentiment gauges to inform their investment decisions.
The recent stall in bitcoin's recovery rally, with prices pulling back to $77,000 from highs above $79,000, may be an indication of a broader reversal, but it is too early to tell.