Recent declines in Bitcoin below $113,000 have led to a shift in sentiment among retail traders, who are becoming more pessimistic.
Change in Trader Sentiment
Analysts at Santiment noted that retail traders have switched their strategy after Bitcoin failed to recover from its recent dip. According to the analysts, 'retail traders have done a complete 180 after Bitcoin dipped below $113,000.' They added that the past 24 hours have marked 'the most bearish sentiment seen on social media' since rising fears of war in the Middle East.
Bitcoin Price and Current Support
Bitcoin fell to $112,656 on Coinbase, marking its lowest price since August 3. The current support level is around $112,000. Bitcoin has retreated by 8.5% from its recent record of just over $124,000, while the total crypto market capitalization dropped below $4 trillion.
Historical Corrections and Market Forecasts
Market corrections during a bull cycle are nothing new and are a healthy part of the larger cycle. Analysts suggest that if history repeats, Bitcoin could pull back as low as $90,000 next month before potentially showing a new surge in the fall, as seen in 2017 and 2021.
The changes in trader sentiment and the decrease in Bitcoin's price highlight the current uncertain market state. However, potential historical corrections may signal upcoming opportunities for investors.
