Bitcoin has risen by 6% in the last four days, including a 3% increase in the last 24 hours. The analytics firm Santiment offered an analysis of the reasons behind this trend.
Recent Surge and Santiment's Explanation
Santiment notes that Bitcoin's recent rise to $84,500 occurred after many traders rushed to sell. A similar situation was observed in February when panic sales were followed by a rally. Predictions of a drop below $70,000 mainly reflect excessive fear, while forecasts of $100,000 and above indicate over-optimism. Historically, markets tend to move in the opposite direction of public expectations.
Current Price Dynamics
Yesterday, Bitcoin broke above the $83,635 level, a key support and resistance zone. The price consolidation around this level suggests the market is awaiting confirmation before the next significant move. Holding above this mark might lead to an increase to $86,754, and further to $90,663. In case of a drop below $83,635, a continued bearish trend to $82,000 or lower is likely.
Potential Development Scenarios
The $83,635 level serves as a critical pivot point for Bitcoin's current price movement. Successfully holding this level could push the price to $86,000 and potentially $90,000. Failing to maintain it might lead to a deeper correction.
Bitcoin's price fluctuations are seen by many as opportunities for purchasing and selling. Traders will closely monitor key support and resistance levels to determine their strategies.
