Economist Henrik Zeberg believes that the current market conditions are favorable for a significant breakout of Bitcoin (BTC). Zeberg, who has 173,900 followers on the social media platform X, suggests that the low market sentiment may indicate that the bottom for Bitcoin and other digital assets is near.

“BTC reached its all-time high on January 20th and has been in a correction since then. The Elliott Wave analysis shows a clear location. Sentiment is extremely negative, with significant losses among alternative cryptocurrencies. However, this may be the exact sentiment needed for the market to move higher.”

Zeberg believes that the top of the current crypto cycle has not yet been reached, despite the recent dip in Bitcoin.

“BTC is down 1.5% this week, yet people are acting as if we are experiencing a major crash. Get a grip on yourself… The top is not in for BTC and alternative cryptocurrencies.”

Meanwhile, the prominent analytics firm Santiment states that market sentiment for Bitcoin is still relatively high based on social media mentions. Santiment observes that more retail traders are returning to Bitcoin after the collapse of alternative cryptocurrencies, and the firm is optimistic about BTC’s future due to potential pro-crypto policies from the administration of US President Donald Trump.

“Despite Bitcoin being down 11% from its all-time high on January 20th, retail sentiment remains high towards the number one cryptocurrency. Many have shifted back to Bitcoin as a relative ‘safe haven’ while alternative cryptocurrencies have experienced significant retracement. There is also a continued optimism that Trump’s pro-crypto policies will create bullish momentum for BTC. Ideally, we would like to see some of this crowd optimism diminish, as historical trends suggest that prices move in the opposite direction of their expectations. However, there is no guarantee that this will occur, and it may require further retracement for small traders to overreact and engage in panic selling once again. Nonetheless, with numerous positive factors pointing towards a bullish long-term future for cryptocurrencies, and with key stakeholders continuing to accumulate during this period of volatility, the emotional rollercoaster of the crowd plays only a limited role in the next moves of the crypto market.”

Bitcoin is currently trading at $96,622, with no change in price at the time of writing.

Source: Santiment/X

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