Bitcoin surged past $84,500 amidst contrasting sentiment from traders and analysts alike.
Sentiment Shift
Data from Santiment shows that social media reached peak negativity when Bitcoin fell to $78,000. Many expected further declines, mirroring the market's behavior in late February when a brief March surge followed widespread bearish outlooks.
Technical Analysis and Indicators
Crypto analyst Rekt Capital pointed out that Bitcoin's recent move filled the CME gap between $82,245 and $87,000. He noted that closing above resistance could drive upward momentum. Additionally, Merlijn The Trader highlighted the 'golden cross,' where the 50-day moving average crosses the 200-day, historically leading to substantial rallies.
Current Market Situation
Currently, Bitcoin is trading at $84,145, down 22.7% from its all-time high. Volatility and sentiment shifts have become ingrained among traders, influencing daily market dynamics.
The sentiment and technical analysis suggest that following the crowd may not be the best strategy. Historical data indicates that markets often move opposite to the majority's expectations.
