The crypto market has bounced back from the lows experienced in late February and early March where BTC fell to as low as $78,000 level. Following the price recovery of Bitcoin to the current level, market participants have started to be optimistic.
Particularly, BTC price predictions across social media have flipped ‘mild’ to ‘extra-bullish.’ But, historically the crypto market has always moved against the investor sentiment. How will BTC continue to trade moving forward?
BTC’s Social Sentiment Has Flipped Mild Greed
According to analytics shared by Santiment, an on-chain and social metrics data tracker, the recent recovery of BTC to $88,000 level has shifted investors sentiment to mild-greed. The change comes after subsequent dips in the price of Bitcoin in February and March. Within this period, Bitcoin reached $78,000 twice depicting how market dynamics have changed since January 2025.
At that moment, traders forecasted Bitcoin prices to dip further to levels between $10K-$69K zone. But, since the market movements historically take advantage of volatility-based buying opportunities, the pessimism resulted in price recovery for BTC.
Bitcoin rose to $88.5K recently leading to traders adopting moderate greed. With market sentiment toward Bitcoin showing a rise in optimism, social media sentiment has it that BTC could trade between $100K-$159K. Notably, Arthur Hayes predicted on March 24 that BTC will hit $110K next with potential surge to $250K afterwards.
However, the fundamental principle remains that Bitcoin often moves opposite the sentiment across social media. Traders need to exercise caution as market correction could follow with the excessive confidence surrounding additional BTC price growth.
Bitcoin Is Down Today But ETF Inflows
The price of BTC is at $86,266.52 marking a 1.3% dip in the day, as per the 1-hour chart on TradingView. Bitcoin is currently facing short term resistance around $87,177 with stronger resistance around $88,514.68. Additionally, the short term support level for BTC is holding at $85,579. An ongoing downward movement is visible with multiple red price bars displaying rising selling pressure.
Failure to hold $85,579.96 could trigger a potential price drop towards the $84,406.31 support. If Bitcoin shifts into an upward trend moving forward, the price could break above the $87,177.63 towards $88,514.68, but only with increased buying.
The Relative Strength Index (RSI) value of 32.92 shows that BTC is approaching the oversold level. The RSI indicates bearish momentum due to its position below the 48.13 moving average. However, a move into the oversold level (30) will present an opportunity for buyers to take control which could push prices upwards.
On the other hand, the MACD crossover indicates bearish market conditions with the MACD line at -184.51 levels descending below the signal line lying at -56.21.The histogram bars are also negative further confirming the bearish bias in the current market.
With “to the moon” or “lambo time” statements prevailing in the current market, traders are urged to adopt a cautious approach since BTC moves against the crowd sentiment. Market analysts should thus observe the recovery of RSI indicators together with MACD signals to determine price trend reversals but rising selling volume could force a quicker market downtrend.
#blockchain #crypto, #decentralized, #distributed, #ledger
This news is republished from another source. You can check the original article here
