Crypto Market Sentiment Improves, Approaching $100K Bitcoin Threshold

Summary:
The crypto market sentiment is showing a recovery as Bitcoin remains above the $90,000 mark. Current sentiment is more optimistic than it was earlier this month when Bitcoin briefly surpassed $100,000. Analysts are contemplating the timeline for Bitcoin to reach that milestone again.

Key Takeaways

The current sentiment in the crypto market is stronger than earlier this month when Bitcoin was above $100,000.
Bitcoin is trading at approximately $91,032, leading analysts to debate the potential timeframe for hitting $100,000 again.
The Crypto Fear & Greed Index shows an “Extreme Fear” level at 25, indicating a notable recovery from lower sentiment readings.
Historical patterns suggest that moments of extreme fear in the market can lead to positive momentum.
December's performance for Bitcoin has historically been decent, averaging a return of 4.75%, but market expectations are tempered after October and November didn't meet predictions.

Crypto sentiment recovers to levels when Bitcoin last traded over $100K

Recovery in Crypto Sentiment

Crypto market sentiment is on the rise, with Bitcoin currently trading above $90,000. This recovery contrasts sharply with earlier this month when Bitcoin was trading at over $100,000. The Crypto Fear & Greed Index, a tool that gauges overall market sentiment, recorded a figure of 25 indicating "Extreme Fear" — up three points from the day before and almost ten points higher than on November 13, the last instance Bitcoin traded above $100,000 before dropping below that threshold.

As of the time of this report, Bitcoin is priced at $91,032 according to CoinMarketCap. Many crypto analysts are now discussing how quickly Bitcoin could return to the $100,000 mark.

Cryptocurrencies, Bitcoin Price Bitcoin is down 18.94% over the past 30 days. Source: CoinMarketCap

A Volatile Outlook in Crypto Sentiment

Crypto expert Ted shared insights on social media platform X, suggesting that if Bitcoin manages to regain the $93,000 or $94,000 levels, “I believe $100,000 for Bitcoin could materialize before any potential decline.”

In a report released on Wednesday, the crypto analytics firm Santiment indicated that the rise in negative sentiment on social media typically precedes bullish movements in the crypto market. “Major recoveries often happen when the majority has lost hope,” Santiment noted, highlighting that markets often trend opposite to prevailing crowd expectations.

Despite this positivity, even well-known crypto influencers are adjusting their projections. On Thursday, Tom Lee, chairman of BitMine, seemed to scale down his earlier predictions that Bitcoin would reach $250,000 by year-end — a target he upheld throughout most of the year. Instead, Lee expressed confidence that Bitcoin could still reclaim the $100,000 level and possibly surpass its all-time high of $125,100.

Will December Break Trends?

According to trader Jelle, the current market dynamics caught many off guard after a series of slow corrections. He pointed out that “the recent sell-off was unexpected for almost everyone.”

As the market transitions into December, it’s worth noting that this month has historically been less volatile for Bitcoin. Since 2013, December has reported an average return of around 4.75%, as per CoinGlass statistics. However, given that both October and November, typically strong months for Bitcoin, failed to live up to expectations, some participants are left wondering if December will continue this trend or deviate from its historical performance.

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