Steep price drop for Bitcoin: Healthy correction or harbinger of further declines?

Sentiment surrounding Bitcoin on social media has reached its lowest point in 2024. According to Santiment analysts, this could actually turn out to be positive for Bitcoin. “Vocal analysts are now negative, which is good news for contrarian thinkers who know the market is moving against private expectations,” Santiment said.

Steep price drop for Bitcoin

From the all-time high of $108,000, Bitcoin has now lost a considerable amount. At the time of writing, there is a price of $ 95,000 on the boards, which means a drop of $ 13,000 for the largest digital currency on the market.

That in itself is not too bad, because in previous bull markets we saw much larger declines for Bitcoin. In that respect, this is a very healthy correction, and shows how much demand there is for Bitcoin at these levels.

Bitcoin appears to be gearing up for a second test of the 50-day moving average. That average is now $93,456, while the price has fallen just below $95,000.

If the bulls manage to hold their ground there, then that is in principle a very good signal for Bitcoin. However, do not forget that a corrective phase often takes a little longer. So we may be stuck in trouble with Bitcoin for a little longer.

One more week of declines?

Popular analyst Elja Boom sees a scenario in which Bitcoin can quickly recover from the declines. Based on a fractal on the daily chart, Boom thinks Bitcoin can quickly get back above $100,000.

“We’ve seen this before,” says Boom’s comment below the graph.

However, according to pseudonymous analyst Rekt Capital, patience is a virtue. He thinks that, based on historical data, Bitcoin can continue to trade at these levels for another week.