Economist Henrik Zeberg believes current market conditions are ripe for a major Bitcoin (BTC) breakout.
Zeberg tells his 173,900 followers on the social media platform X that market sentiment has gotten so low that it may indicate the bottom for Bitcoin and other digital assets is close.
[adinserter block="1"]“BTC reached ATH (all-time high) on January 20th. Since then it has been in a correction. The EW (Elliott Wave)-location seems clear. Sentiment is in the gutter. Massive destruction among alts. But that may be exactly the sentiment we need for the market to move higher.”
Zeberg says he believes the top is not yet in for the current crypto cycle, despite Bitcoin’s recent dip.
“BTC is down 1.5% on the week! People acting like we have a full-blown crash! Get a grip on yourself…
Top is not in for BTC and alts.”
Meanwhile, prominent analytics firm Santiment says market sentiment for Bitcoin is still relatively high based on social media mentions.
Santiment says more retail traders are returning to Bitcoin after altcoins collapsed, and the firm is optimistic about BTC’s future due to potential pro-crypto policies coming out of the US President Donald Trump’s administration.
“Despite Bitcoin being -11% from its January 20th all-time high, retail sentiment is high toward crypto’s number one asset. Many have flocked back to it as a relative ‘safe haven’ while altcoins have been heavily retracing. There is also continued optimism that Trump’s pro-crypto policies will inevitably create bullish momentum again for BTC, in particular.
Ideally, we would like to see some of this crowd optimism die down, as prices historically will move in the opposite direction of their expectations. Though there is no guarantee that this will happen, it may take a further retrace for small traders to begin overreacting and panic selling once again.
But of course, with so many positives pointing toward a bullish long-term crypto future (including continued key stakeholder accumulation during this volatility) that the crowd’s rollercoaster of emotions plays only a limited role in crypto’s next moves.”
Bitcoin is trading for $96,622 at time of writing, flat on the day.
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