Bitcoin price crash predictions are coming from self-interested sellers.
Some traders warning of an upcoming Bitcoin correction may be motivated more by personal gain than an objective view of the market, according to one Bitcoin analyst.
“If you're selling, you really want lower prices,” Bitcoin analyst PlanC said on the Mr. M podcast, published on YouTube on Friday, reiterating that those who have recently sold Bitcoin may be more active in promoting the idea of a Bitcoin price drop on social media in hopes of seeing favorable market dynamics. “The whole point of selling is to think a bear market is coming. So you're going to have to be more active on social media.”
Overall, sentiment on social media regarding Bitcoin remains positive.
Many market participants are turning to social media to gauge the overall sentiment around Bitcoin, paying particular attention to community interactions and forecast posts.
This comes amid a sharp decline in sentiment in the cryptocurrency market: the Fear and Greed Index, which reflects overall market sentiment, showed an “extreme fear” reading of 20 in Saturday's update.
Figure 1. The Cryptocurrency Fear and Greed Index returned a “Extreme Fear” rating on Saturday. Source: Alternative.me.
However, data from sentiment platform Santiment shows that overall sentiment towards Bitcoin on social media is 57.78% positive, 15.80% neutral, and 26.42% negative.
PlanC stated that the recent drop in Bitcoin's price below the psychological level of $100,000 to $98,000 may have marked a local bottom for now.
PlanC predicts a 'good chance' that Bitcoin has just hit bottom
“I think there's a good chance, again, it's hard to assess exact probabilities, but in my view, there's a good chance that this was a major bottom,” PlanC said.
Figure 2. Bitcoin has fallen 16.15% over the past 30 days. Source: CoinMarketCap.
“I don't think we'll fall much,” he added.
Bitcoin has since rebounded to $103,562, according to CoinMarketCap, but PlanC warned that a short-term pullback is still possible.
“We're probably going to have another scare in the next week or so,” he explained. “Maybe we'll drop to somewhere around 95, right?”
This comes amid yet more bearish forecasts from analysts over the past week.
Bloomberg analyst Mike McGlone wrote in a post on X on Thursday that Bitcoin reaching $100,000 could be a “tipping point on the way to $56,000.”
Meanwhile, ARK Invest CEO Cathie Wood has lowered her long-term Bitcoin price forecast to $300,000.
Source: cryptonews.net
