Bitcoin could soar 25% in days if history repeats itself, but there’s a catch: data

Bitcoin’s massive surge from less than $70,000 to more than $108,000 in a month and a half after Donald Trump’s landslide victory in the US presidential election left some investors out of the loop.

However, the ever-volatile nature of BTC always leads to substantial corrections that provide opportunities for those who missed the initial train to get on board. In the past two days, the price of bitcoin fell by double digits, which Santiment says has caused the crowd to look to buy the dip.

Also, history shows that it could send BTC flying again.

Is BTC About To Bounce?

As the analytics platform noted, the last time such discussions erupted in a similar fashion was in early August, when the price of the cryptocurrency fell below $50,000. A few days later, however, the asset had risen more than 25% to over $62,000.

If history repeats itself now, even though BTC’s market cap is much higher, bitcoin could recover from its big pullback and head for a new all-time high of over $120,000.

With Bitcoin falling to $95.5k today, the ratio of crypto discussions to buying the crypto drop has reached its highest level in over 8 months. The last time we saw crowds nearly as enthusiastic about dive shopping was the big crash on August 4th. Since… pic.twitter.com/39NlpnGMCs

— Santiment (@santimentfeed) December 20, 2024

Not so fast

While the “buy-the-dip” history shows that BTC’s correction may be over, this narrative is not supported by other on-chain and technical metrics, such as a specific demand zone.

IntoTheBlock posted even before bitcoin decisively missed the $100,000 mark yesterday that this area had formed around $97,500 given the large number of investors buying at these prices over 1.4 million BTC. These accumulations turned this level into a “major” support zone, which has now been broken to the downside.

Once these vital support lines are breached and investors who recently entered see their positions in the red, at least on paper, many tend to dispose of their holdings, leading to more intense selling pressure for to the underlying asset.

Will Bitcoin retreat below $100,000?

Interestingly, a major demand zone has formed just below $100,000.

Over 1.45 million BTC were accumulated at an average price of 97.5k, making it a major potential support zone. pic.twitter.com/vDcHEl8OKV

— IntoTheBlock (@intotheblock) December 19, 2024

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