After the price of Bitcoin surpassed the $94,000 mark, user activity on social media sharply increased, with discussions about the possibility of the price rising to $100,000. Analysts at Santiment note that such euphoria among investors may signal a potential shift in market trends.
This is reported by Business • Media
Investor Sentiment and Correction Risks
Experts at Santiment point out that excessive crowd emotion often precedes price corrections. According to their analysis, red peaks on the chart reflect excessive greed and heightened expectations for further growth, which is usually accompanied by a decline in the asset’s value. Meanwhile, blue peaks indicate fear and doubt, which often precede new waves of growth.
“They noted that when the market behaves too emotionally, it often signals a trend change. The experts published a chart where red peaks indicate excessive greed and growth expectations—usually followed by a price drop. In contrast, blue peaks indicate fear and doubt—often preceding a rise in value.”
Assessment of On-Chain Data and Market Prospects
After a brief decline to $91,200, Santiment recommends monitoring the dynamics of market emotions. If the wave of excessive optimism fades and the market becomes more restrained, Bitcoin may have a chance to break historical highs and approach $100,000 again.
However, analysts at CryptoQuant point to the continued low on-chain activity. Even with the price recovering above $93,000, demand for Bitcoin remains weak, which may complicate a swift return to new price records. According to them, the situation could change with the end of the holiday season and an increase in trader activity.
Additionally, CryptoQuant highlighted the cost basis of coins moved 6-12 months ago. Currently, Bitcoin is trading below this value, which is historically viewed as a “bearish” signal for the market. If the cryptocurrency’s price can establish itself above this level, around the $100,000 mark, it would signal a transition for the market into a recovery phase. Otherwise, risks of further price declines remain.
It is worth noting that according to Bloomberg, traders expect Bitcoin to reach the $100,000 level as early as January.