What's Next for Bitcoin? On-Chain Data Signals What's Coming
2024-12-14
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Bitcoin, the first and largest cryptocurrency by market capitalization, rose to a high of $102,650 in Saturday's trading session as the crypto market closed off the week.
According to Santiment, despite the price recovery, social media chatter around buying Bitcoin remains surprisingly muted, reflecting a cautious sentiment in the market.
This lack of enthusiasm presents a compelling setup for Bitcoin’s next big swing, with on-chain data offering crucial clues for timing potential buy and sell opportunities.
🤑 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
According to Santiment, based on the social dominance indicator, the best times to buy are when the crowd is panicked, and the best times to sell are when the crowd is greedy.
Per a chart presented by Santiment, it was observed that a high ratio of sell versus buy interest led to a Bitcoin rise on Nov. 26 and Dec. 2, however, the high ratio of buy versus sell interest on Nov. 21 and Dec. 5 saw Bitcoin drop afterward.
Currently, the quiet buy calls on social media might signal that the market is not yet in a state of greed. This might suggest that there might still be room for Bitcoin to grow before reaching a peak where selling would be advantageous.
Bitcoin surpasses $102,000
The cryptocurrency market surged on Wednesday, after two days of digestion following Bitcoin's historic rally to $100,000 last week.
Cryptocurrencies received an additional boost as the November consumer price index came in as expected, up 0.3% from October and 2.7% from a year ago. Speculators believe that the figure clears the way for the Federal Reserve to drop interest rates again at its December meeting next week.
Bitcoin retested the $102,000 level for the second time this week, the first being on Thursday, and reached intraday highs of $102,650 in today's trading session.
Investors expect to see a continued chop for Bitcoin around the $100,000 level but remain optimistic that its price might double in the year ahead. Bitwise and Bernstein predict a cycle high of $200,000 in 2025. In a 2025 prognosis published Wednesday, Fundstrat's Tom Lee predicted that Bitcoin would have an "upside to $250,000" next year. Bitcoin's recent record high is $103,844.