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What can we expect from Bitcoin after its recent breach of the symbolic $100,000 mark? As the queen of cryptocurrencies now approaches $102,650, speculation is rife about its next destination. Should we expect another surge to unprecedented heights or an unexpected correction? An analysis of on-chain data and market psychology could provide us with valuable clues regarding the next steps for BTC.
Bitcoin: on-chain signals to watch
The Bitcoin news: this good old crypto wanderer continues to surprise. After reaching a record of $102,650, investors remain curiously cautious. According to Santiment, the market still seems far from euphoria. And that’s good news: when the crowd panics, buying opportunities flourish; when it gets excited, it is often time to sell.
The on-chain data reveals that:
- Periods of high selling pressure, such as November 26 and December 2, often precede a rise;
- In contrast, a buying frenzy observed on November 21 and December 5 coincides with declines;
- Currently, calls to buy on social media are strangely calm, signaling a possible upside for Bitcoin before a potential correction.
As Santiment pointed out:
“This chart is essential to know when to buy (when the crowd panics) and when to sell (when it becomes greedy)“.
🤑 Bitcoin has climbed back to $101.5K as crypto's week closes. Buy calls are quiet on social media. For Bitcoin's next big swing, this chart will be highly useful as to when to buy (while the crowd is panicked) and sell (while the crowd is greedy). 👇https://t.co/Ub7Cb7UyqA pic.twitter.com/WmaF2YFi8Z
— Santiment (@santimentfeed) December 14, 2024
In short, to hope to ride the next wave of BTC, it is better to keep a close eye on collective psychology.
The price of BTC: well-orchestrated volatility
With a price hovering around $100,000, Bitcoin is playing a balancing act. The recent increase in the Consumer Price Index (CPI) to 2.7% year-on-year fuels speculation about a potential interest rate decrease by the Federal Reserve. If these forecasts are confirmed, they could provide BTC with a tailwind.
However, investors must stay vigilant: the price of BTC is anything but predictable. Institutions like Bitwise and Bernstein are betting on a peak of $200,000 by 2025, while Fundstrat sees even bigger with a forecast of $250,000.
But in the meantime, Bitcoin is expected to continue to navigate between spectacular rises and brutal corrections.
Thus, according to VanEck, 2025 promises surprises for Bitcoin: a summer correction of 30% followed by a final sprint to $180,000. Surprises will undoubtedly be on the agenda.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
