Bitcoinâs Rally Challenges Crowd Sentiment
Bitcoinâs recent climb to $84,500 on Friday proves that following the crowd can be risky. Market movements often defy common predictions during extreme fear or greed.
Data from Santiment shows that social media negativity peaked when Bitcoin hit $78,000. this mirrors Februaryâs market behaviour, where a price surge followed a bearish outlook.
Santiment notes, âBitcoinâs rally back to $84.5K Friday shows what happens when the Monday crowd claims itâs time to sell.â When Bitcoin was at $78,000. This stability creates clear sentiment markers: predictions below $70,000 mean excessive fear,while forecasts above $100,000 signal overexuberance.
Technical analysis supports this sentiment-based approach. Crypto analyst Rekt Capital noted weakening resistance signs. The recent price movement is filling the CME gap between $82,245 and $87,000. A daily close above resistance could catalyze further upward momentum.
Another analyst, Merlijn The Trader, highlighted Bitcoinâs approaching âgolden cross.â This is a pattern where the 50-day moving average crosses above the 200-day moving average. Historically, this has preceded substantial rallies: 139% in 2016, 2,200% in 2017, and 1,190% in 2020. When sentiment reaches extremes, positions become overcrowded, creating conditions for sharp reversals. As traders collectively lean bearish, selling pressure exhausts, leaving primarily buyers to influence price action. At last check, Bitcoin was down 0.2% for the day,trading at $84,145.Itâs down 22.7% from its all-time high of $108,786.
