Despite the sharp correction in the price of bitcoin a couple of days ago, sentiment remains positive.
In fact, this correction was expected by many, so much so that it did not really scare any professional investors.
A month ago, the price of BTC was below $20,000, while the low peak reached during this correction was still above $30,000.
Moreover, after hitting this low, the price practically bounced right back into the area between $33,000 and $35,000.
The retracement therefore does not seem to have affected the medium to long term trend, but for now, it would seem to have only interrupted the exaggerated upward trend in the short term.
Bitcoin Sentiment According to eToro
Analyst Simon Peters of eToro reveals that although price movements lately have been similar to those of 2017, investor sentiment remains positive. In contrast, in late 2017 and early 2018, there was a drastic reversal of the situation, which turned strong positive sentiment into strong negative sentiment in a matter of days or weeks.
Peters points out that despite the short-term market correction, Bitcoin remains in good health still hovering around the $35,000 mark, which is far higher than not only the average price in 2020 but also that of December alone.
“Many detractors were quick to believe the bitcoin bubble had popped, as the price seemed destined to fall below $30,000 but this failed to materialise. As a result, enthusiasts declared victory, arguing that $30,000 is a new bottom for the cryptoasset”.
However, he also adds that he believes it is still too early to say that $30,000 can be considered a price floor from which a new rise can begin.
Nevertheless, Peters goes on to say:
“From a long-term perspective, the outlook for bitcoin remains positive. It is likely that the most bullish large-scale investors have been using the recent price dip as an opportunity to add to their balance sheets at a (relatively) cheap price and retail investor sentiment continues to remain positive”.