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 location of the Elliott Wave seems clear. Sentiment is extremely negative. There has been a significant decrease in the value of altcoins. However, this may be the exact sentiment needed for the market to move higher.”

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

“BTC is only down 1.5% for the week! People are acting as if we are experiencing a major crash! Get a hold of yourself…

The top is not yet reached for BTC and altcoins.”

Meanwhile, leading analytics firm Santiment states that market sentiment for Bitcoin is still relatively high based on social media mentions. Santiment also notes that more retail traders are returning to Bitcoin after the collapse of altcoins, 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 11% lower than its all-time high on January 20th, retail sentiment towards the number one crypto asset remains high. Many have returned to Bitcoin as a relative ‘safe haven’ while altcoins have experienced significant retracement. There is also ongoing optimism that Trump’s pro-crypto policies will create bullish momentum for BTC, in particular.

Ideally, it would be beneficial for some of this crowd optimism to decrease, as historically, prices tend to move in the opposite direction of expectations. Although there is no guarantee that this will occur, it may take a further retracement for small traders to overreact and engage in panic selling once again.

However, with several positive factors pointing towards a bullish long-term future for crypto (including continued accumulation by key stakeholders during this volatile period), the emotions of the crowd play only a limited role in the future movements of the crypto market.”

Bitcoin is currently trading at $96,622, remaining unchanged for the day.

Source: Santiment/X
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