thecryptobasic.com
Bullish sentiments around Bitcoin appear to be flipping bullish following the latest recovery push from the industry firstborn.
Bitcoin, the leading crypto by market cap, has had a woeful showing over the past week amid market uncertainty sparked by statements from the Federal Reserve. But as the Christmas holiday festivities swing into high gear, the asset has shown flickers of strength, stirring optimism of a run to new highs at a potentially psychologically important level.
Bitcoin Traders Flip Bullish
On Christmas day, December 25, 2024, Bitcoin surged to highs just above $99,900 to cap off a 7% rally from Christmas Eve lows around $93,500.
Following the strong performance, traders are again significantly optimistic about the asset’s price in the short term, at least according to Santiment Feed data.
On Thursday, December 26, the prominent crypto analytics firm shared data showing that predictions that Bitcoin was on its way to clinch the $110,000 price point again flooded social media platforms with social dominance spiking from 0 to a high 0.056 per the analytics firm’s scale.
Is this psychologically important level finally within reach?
A Potential Contrarian Indicator
Despite the optimism, Santiment Feed warns that historically, the rally typically comes when the crowd does not expect it. To be sure, the chart shared by Santiment Feed on Thursday shows that Bitcoin price corrections have followed previous spikes in these $110,000 calls.
Specifically, on December 15, calls that Bitcoin would hit $110,000 spiked as the asset hit $106,000. However, the price eventually topped out at $108,000 and reversed course.
Similarly, on December 18, $110,000 Bitcoin price predictions picked up again as the asset traded at $104,000, but these hopes were dashed following the Fed’s projection of fewer than expected interest rate cuts in 2025.
The asset tumbled from highs around $106,000 on the day to below the $100,000 price point and has languished there since.
At the time of writing, Bitcoin’s price appears to be facing rejection at the $100,000 price point again, as it has shed some of its Christmas gains to trade around the $98,000 price point.
As such, hopes of a Bitcoin rally to new highs in the short term may now depend on a potential Santa rally.