Crypto trader sentiment on social media is currently split right down the middle, with one side predicting a Bitcoin drop below $70,000 and the other expecting a rally to $130,000.
Bitcoin (BTC) dipped below $87,000 on Thursday for the first time since April; however, “Social volume still shows a mixed bag of dip buy optimism and doom & gloom, with very little in between,” market intelligence platform Santiment said in an X post.
Data from Santiment’s research platform, Sanbase, found that social media mentions on Thursday were roughly evenly split between predictions of Bitcoin dropping to between $20,000 and $70,000 and more bullish takes of between $100,000 and $130,000.
However, leading into Friday, there were more discussions about lower Bitcoin prices.
“Ideally, we begin seeing many retail predictions of sub-$70K prices, which would indicate a bottom is finally here. Prices move opposite to how the crowd typically predicts markets.”
Tug of war between crypto bull and bears
Nic Puckrin, an analyst and co-founder of educational portal The Coin Bureau, said in a research note sent to Cointelegraph that Bitcoin is being “pulled in different directions by conflicting news,” as a “bull-bear tug-of-war” unfolds.
“On the one hand, we have the rapidly dwindling chances of a December rate cut by the FOMC — on the other, a sign of relief that the AI bubble isn’t about to implode, after Nvidia’s forecast-beating earnings,” he said.
“If this positive mood continues into the weekend, Bitcoin will likely follow,” Puckrin said, adding that in the event it does trend upward, the “next resistance level to watch” is around the $107,500 mark.
Extreme fear presents an opportunity, but timing is everything
Meanwhile, Rachael Lucas, an analyst at Australian cryptocurrency exchange BTC Markets, noted that Bitcoin is trading around $87,000, and technical indicators such as momentum, money flow, and volume are all trending lower, which “reflects a sharp deterioration in sentiment.”
Related: Tom Lee speculates wounded market makers behind crypto crunch
“The volatility is being driven by a combination of macroeconomic pressure, liquidity draining from the market, risk-off sentiment, and the cyclical dynamics that have historically shaped Bitcoin’s price action,” she said.
The Crypto Fear & Greed Index, which measures overall market sentiment, has returned a rating of 14, placing it in the “extreme fear” territory. However, it is still slightly higher than Thursday’s score of 11, the lowest since February.
Lucas said, “Extreme fear often precedes opportunity, but timing is everything.”
“With technicals under pressure and macro risks elevated, traders and investors face a challenging environment,” she added.
“Whether this marks the start of a deeper correction or sets the stage for a rebound will depend on liquidity conditions, regulatory developments and institutional flows in the coming weeks.”
Magazine: Big Questions: Did a time-traveling AI invent Bitcoin?