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On December 25, Bitcoin (BTC) hinted at a potential “Santa Rally” as its price attempted to retake the $100,000 mark. However, this price increase has been far from the target, making short-term holders doubt the possibility of a short-term recovery.
Will this Cryptocurrency price continue to trade below the six-figure threshold?
Sentiment Around Bitcoin Is Bearish
Bitcoin’s failure to recover to $100,000 pushed its price below $97,000 and negatively impacted its market position. But the bearish sentiment doesn’t stop there.
According to IntoTheBlock, the Address Hold Index, which tracks the activity of Bitcoin holders over a period of 30 to 365 days, has shown a significant decrease over the past week.
This group, often called short-term holders, plays an important role in reflecting market sentiment. A rise in this group usually signals increased optimism, but the recent decline suggests investor confidence is waning.
If this trend continues, this could indicate sustained downward pressure on Bitcoin value in the short term.
Another indicator that supports this sentiment is Short-Term Holder Net Realized Profit/Loss (STH-NUPL). STH-NUPL measures the behavior of investors who have held coins for less than 155 days.
With this data, it is possible to determine whether Bitcoin short-term investors are optimistic, fearful or greedy. According to Glassnode, the index has dropped into the hope or fear zone (orange), suggesting that investors are skeptical of a significant BTC recovery. If this doesn’t change, BTC may have difficulty attracting enough demand to push prices higher.
BTC Price Forecast: Below $90,000 Next?
On the daily chart, Bitcoin price encountered resistance at $99,332. This obstacle is one of the reasons why this Cryptocurrency cannot rise to $108,398. With this pushback, Bitcoin’s recovery may continue to be hindered in the short term.
Additionally, the Relative Strength Index (RSI) has dropped below the neutral 50.00 level. This drop shows that the momentum around BTC has turned bearish. If such a situation continues, the currency is at risk of falling to $85,851.
However, if the bulls can help BTC overcome the $99,332 resistance, the trend could change. In that scenario, Bitcoin price could move closer to $110,000.
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