The general public has made its prediction: the price of Bitcoin, currently at $79,854.07, is expected to rise above $90,000 in the near future, potentially turning its year-to-date return from negative to positive. 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 that over the past week, the majority of predictions have been in favor of Bitcoin's price surpassing $90,000.
Mentions of the $50,000-$59,000 range are being dismissed as expressions of fear, uncertainty, and doubt. The crowd is anticipating the slow recovery from the February low of around $60,000 to continue into May, which is understandable given the recent inflows into exchange-traded funds and Bitcoin's resilience amidst Iran-related conflict, oil price surges, and DeFi hacks.
According to Santiment, this widespread bullishness is actually a reason to be cautious, as overly optimistic social sentiment can often signal a potential bearish performance. This phenomenon is not unique to cryptocurrency markets, as contrarian traders in traditional markets also 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 it unclear whether this is a temporary pause or the start of a broader reversal.