Key Takeaways:
- Bitcoin (BTC) surged above $70,000 on March 10, 2024, before retracting to around $69,400.
- Social Sentiment surrounding BTC has turned negative, hinting at a potential pullback.
- Historical accumulation trends suggest strong support around $65,000.
Bitcoin (BTC) soared above the $70,000 threshold once again on March 10, 2024, before retracing back to the $69,400 level. In this analysis, we delve into how recent shifts in investor sentiment could impact BTC’s chances of surpassing $75,000 in the coming week.
Following an impressive 20% rally to new all-time highs in the first ten days of March 2024, many are now wondering if Bitcoin is poised for a significant correction.
Media Sentiment Turns Bearish Bitcoin achieved a new all-time high when it initially crossed the $70,000 mark on March 8. However, on both occasions, the bulls struggled to establish a firm support level above $70,000. Recent on-chain data trends suggest that a notable change in investor sentiment may be contributing to this retracement.
Santiment’s weighted sentiment chart, which measures the difference between positive and negative mentions of BTC across crypto media channels, illustrates this shift. Since March 8, BTC’s weighted sentiment has been steadily declining, dipping into negative territory around 0.4% as of March 10. This indicates a predominance of negative comments about BTC on social media platforms.
Such sentiment often arises when an asset breaks through a significant resistance level, like Bitcoin’s recent surge past multi-year highs. Investors may become cautious, anticipating a potential retracement.
Bitcoin’s Short-Term Outlook Given the current pessimistic sentiment among Bitcoin investors, a pullback toward $60,000 appears more likely than a move toward $80,000 in the near term. However, historical accumulation trends suggest that BTC could find substantial support above $65,000, especially if demand surges with the opening of Bitcoin ETF trading sessions on March 11.
IntoTheBlock’s In/Out of the Money chart reveals that a significant cluster of holders, comprising 441,360 addresses holding 345,110 BTC at an average price of $65,290, could defend their positions. If this support level holds, Bitcoin may avoid a significant downturn. However, if breached, a decline toward $60,000 could be in store.
On the upside, BTC could advance toward $80,000 if ETF inflows increase further in the coming week. However, the $75,000 milestone could pose a significant challenge to Bitcoin’s bullish momentum in this scenario.
Powered by Crypto Expert BD
Follow us on Twitter: https://x.com/CryptoExpert_BD
Join our Telegram channel: https://t.me/CryptoExpert_BD
