CMC News

$BTC Bottom Not Yet Reached Despite Fear Indicators, Says Santiment

Crypto traders have not shown enough fear on social media to confirm a market #bottom, according to Santiment founder Maksim Balashevich, who suggested $BTC could still slide to around $75,000. The crypto market sentiment platform founder stated the crowd is not scared enough for a true bottom, despite multiple fear indicators suggesting otherwise.

Balashevich explained that his hesitation comes from observing significant optimism online that the downtrend will reverse in the near term, which typically does not occur when a true market bottom is forming. A move to $75,000 would represent an approximate 14.77% drop from Bitcoin's current price of $88,350, according to data cited in a YouTube video published Friday.

Japan's central bank pushed interest rates to a 30-year high of 0.75% on Friday, a move that has previously been associated with roughly 20% corrections in #Bitcoin. However, Balashevich stated a move down to the $75,000 price level would potentially provide a very good setup for traders.

The Santiment founder cited discussions in retail-dominated channels about Bank of Japan rate cuts and bears getting caught, with participants expecting the market to continue upward. These kinds of statements are not what he wants to see, Balashevich said, adding that if circumstances were different, he would be very confident in calling a market bottom.

#Crypto market indicators appear to conflict with Balashevich's assessment, with the Crypto Fear& Greed Index lingering in #ExtremeFear territory since Dec. 14. On Sunday, the index posted an Extreme Fear score of 20, suggesting heightened market anxiety.

The Altcoin Season Index, which measures the performance of the top 100 #altcoins relative to Bitcoin over the past 90 days, posted a Bitcoin Season reading of 17 out of 100 on Saturday.