A recent surge in social media posts is predicting that the price of Bitcoin will exceed $90,000 in the near future, potentially turning the year-to-date return from negative to positive. However, it remains to be seen 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 that the majority of posts are leaning towards a price increase above $90,000, with mentions of lower price ranges being dismissed as fear, uncertainty, and doubt.
The crowd's expectation of a continued recovery from the February low of around $60,000 may be justified, given the recent inflows into exchange-traded funds and Bitcoin's resilience in the face of global conflicts and DeFi hacks. However, Santiment warns that this overwhelming bullishness may actually be a contrarian indicator, suggesting that the opposite may occur. As the firm noted, 'price predictions of a coin are a great way to see what the OPPOSITE likely path for prices will look like.' This sentiment is echoed by traditional market contrarian traders, who use sentiment gauges such as the AAII Investor Sentiment Survey and the CNN Fear & Greed Index to inform their decisions.
Interestingly, Bitcoin's recovery rally has already stalled this week, with prices pulling back to $77,000 from highs above $79,000 on Monday, leaving many to wonder whether this is just a pause or the start of a broader reversal.