A Bullish Momentum Is Coming
Bitcoin investors and traders are always trying to perfectly time market moves, but this is impossible for everyone. What’s the reason? Understand and interpret market sentiment. While there are many indicators that can help predict movements, most of them have a delay and are therefore called lagging indicators. Let’s explore the possibilities of when Bitcoin will reach $110,000.
Explore Bitcoin Charts
Before we discuss the sentiment side, let’s take a look at what is happening with Bitcoin right now.
At the time of writing, Bitcoin is trading at $98,268, up just 0.08% from the past 24 hours. The price rose to $99,950 a few hours ago, but the moving average of 100 brought it back down. The current support level is MA 200. This is also an area where BTC has faced high resistance before, so it will now act as support as well.
The thing to watch here is the RSI, currently at 53.60 and continuing to fall with the price. Trading volume was also down 17.90% today. Although the Fear and Greed Index recorded 79, which is considered extremely greedy, market sentiment remains bearish.
market sentiment
Shared market intelligence platform Santiment deep insights in their X post. It describes how Bitcoin works against market sentiment. On December 15, social media was filled with speculation that BTC would hit $110,000, but it eventually reached a maximum of $108,000, disappointing the market.
The same thing happened when the cryptocurrency price was at $104,000 and someone mentioned that it reached $110,000 and it supported again.
If we analyze the history of Bitcoin movements and compare it with market sentiment, we see that things are going in the opposite direction to what the major markets are mentioning. When the market is filled with highly bearish sentiment, Bitcoin suddenly rises and vice versa.
As people become super bullish again and market sentiment becomes greedy, we should expect prices to fall rather than rise. Once people stop expecting the market to go up, they get shocked again.
Bitcoin Dominance and Foreign Exchange Reserves
Bitcoin’s market dominance is 58.43%. This means investors hold more Bitcoin than other cryptocurrencies. Historically, whenever BTC dominance fell below this point, the price of BTC followed suit, so this particular area can be said to be a support area. Currently we can see that the price is falling, but dominance is rising, which means that money will soon start flowing into Bitcoin from alternatives. But before that can happen, prices must correct and create bearish market sentiment.
BTC exchange reserve data shows that reserves have been declining and prices have been rising since February 2024. This indicator shows the amount of Bitcoin on exchanges. The declining numbers indicate that people are moving cryptocurrencies out of crypto and into cold storage, which signals bullish momentum.
Looking at the past few days, foreign exchange reserves have been growing for a period of time. This happens because whales move their cryptocurrencies out for sale when the price exceeds $100,000. Now, the downward curve signals that another bullish move is imminent.
What to expect?
From what we have discussed, it should now be clear that the market is moving in the opposite direction to market sentiment. Although we can see Bitcoin reserves falling and prices falling as well, Bitcoin market dominance is rising. This is a clear indication that the market is planning to catch traders off guard. People will be bearish and take short trades, and this is an opportunity for the big, smart traders to take this money out of the market and enrich themselves. These are not financial advice and should be considered educational content.
So, are you bullish or bearish on Bitcoin?
