Is Bitcoin ready to rebound by $100,000? This is what the bearish crowd suggests

Bitcoin price fluctuated significantly recently, triggering bearish sentiment in the market. However, historical data may imply that this may be a potential buying opportunity.

Bear market counterattack?

After MicroStrategy increased its holdings in Bitcoin, the price of BTC once exceeded US$100,000, reaching a new high this year. But the good times did not last long. In the following days, the price plummeted by more than 10,000 US dollars, falling to a low of 91,250 US dollars (Bitstamp data), setting a new low since late November 2024. Despite this, the bulls eventually prevented the decline from further falling to the $90,000 mark.

Panishment spreads

The plunge caused panic in the market, with the cryptocurrency fear and greed index returning to the neutral range on Friday, the first time since October. Such violent fluctuations usually indicate an imminent reversal of market sentiment.

Walking against the trend?

Santiment crypto analysis platform pointed out that Bitcoin price trends tend to be opposite to market expectations. When bearish sentiment is strong on social media, prices may rise instead, and vice versa.

In early December 2024, Bitcoin experienced a similar plunge, but then rebounded strongly and hit a new high. Therefore, Santiment believes that current bearish sentiment may herald the possibility of price increases, especially as market pessimism continues.

The crypto market has performed disappointingly in the past week, with selling interest significantly higher than usual. However, as the bull market in the fourth quarter of last year showed, when the market is too bearish, the probability of price increases instead.

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