- Bitcoin briefly surged to $94,000, triggering a sharp spike in trader FOMO and excitement.
- Rising retail participation coincided with Bitcoin’s price stalling and slightly reversing.
- Analysts expect potential short-term volatility, including a possible correction toward $80,000.
Bitcoin hit $94,000 on 9 December in a sudden price move that brought relief to the wider crypto market as well. The move has ignited fresh greed, with players watching on the sidelines suddenly waking up to the market again.
Data from on-chain analytics platform Santiment reveals that there is a sudden awakening of traders with fear of missing out (FOMO), causing them to jump back in as they expect higher prices after Bitcoin reaches this high.
Social media data from the platform also reveals that calls for “higher” & “above” have skyrocketed on X, Reddit, Telegram, and others, indicating the sudden spike in interest that characterizes a typical FOMO trend.
Bitcoin Stagnates as Retail Jumps in
Bitcoin began an upward move on 9 December that raised the price to over $94,000. This is the first time the price has risen this high since mid-November, which generated FOMO from traders and investors who were passive initially.
The typical FOMO begins when retail investors notice a price rise and suddenly jump in to buy on the way to the top. As a result, the price rise stalls and a correction is usually the next predictable outcome. According to Santiment data, retailers’ call for “higher” saw a sudden spike on the 9 December, thus slowing down the price of Bitcoin.
At the time of this report, the coin was trading at $92,558 after the FOMO led to a slight reversal from the $94,000 top. This isn’t surprising as the market usually moves in the opposite direction to small traders’ behavior. With a sudden jump in retail interest, the price is likely to drop even further until the sentiment turns bearish again with calls for “lower” outweighing calls for ‘higher’.
Bitcoin May Still Correct to $80,000
Despite the retrace back to $92,000, analysts believe Bitcoin can still rise higher but will likely correct to $80,000 eventually. One analyst recently opined that the coin could hit $100,000 but it doesn’t mean that the downward trend is over until there’s a sweep of the downward liquidity towards the $80,000 price, and this has been supported by another analyst.
Such a correction will weaken retail sentiment, perfectly setting the stage for the reversal that investors have been looking forward to. According to Santiment, this weakening of the sentiment is required for a sustained upward move.
More Must-Reads:
- Bitcoin’s Correction Isn’t Done Yet – Brace Yourself
- Bitcoin Braces for FOMC as Familiar Pattern Returns
- Bitcoin Dominance Echoes 2021 Crash – Is Altcoin Season Imminent?
What do you think?
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