Bitcoin’s price has bounced back above $97,000, but not everyone’s celebrating. While this looks positive, many traders remain cautious.
Traders’ Shifting Sentiment
Despite the price recovery, a significant number of Bitcoin traders on Binance are still betting against further price increases. The percentage of traders expecting a price rise dropped from 66.35% to 55.22% in just 24 hours. This is a big deal because these Binance traders usually have pretty accurate predictions. While a majority (55.22%) are still bullish, this drop suggests the recent price jump might just be a temporary relief, not the start of a major bull run.
Conflicting Signals: Bullish and Bearish Factors
The price recovery above $97,000 follows a dip below $90,000 a couple of days prior. Some analysts, like Jelle, believe breaking through $97,000 could lead to new highs for Bitcoin. This optimism stems from the potential for Bitcoin to hit the psychological $100,000 mark.
However, there’s plenty of uncertainty. Recent economic data suggests the Federal Reserve might be less generous with its monetary policies than last year. This is generally bad news for Bitcoin, as investors might be less willing to take risks.
On the flip side, Donald Trump’s incoming administration is offering some hope. His promise of a “Strategic Bitcoin Reserve” could boost Bitcoin adoption and its price.
A Change in Market Structure?
Analyst Trader Tardigrade sees things differently. He believes Bitcoin’s market structure has shifted from a downtrend to an uptrend. He points to a key “equal high” that marked a change in the price pattern. Now, with Bitcoin breaking through resistance, he’s optimistic. He suggests that if Bitcoin holds above the $96,000 support level, a new bull run could begin, potentially pushing the price back above $100,000 and beyond.
The Current Situation
At the time of writing, Bitcoin is trading around $97,300, up over 2% in the last 24 hours. The conflicting signals from traders and analysts suggest a period of uncertainty remains. Whether this is a temporary bounce or the start of a new bull market remains to be seen.
