Analyst Suggests Bitcoin May Still Be on a Downward Trend as Social Media Anxiety Stays Minimal

Bitcoin may still experience additional declines, as cryptocurrency traders have not yet exhibited the level of anxiety typically seen at a market bottom, according to Maksim Balashevich, founder of Santiment.

Key Takeaways:

• Bitcoin could potentially drop toward $75,000, as social media sentiment appears overly optimistic, according to Maksim Balashevich of Santiment.
• The analyst notes that market bottoms generally occur during periods of fear and pessimism, rather than confidence in a swift recovery.
• Japan’s interest rate increase introduces downside risk, although a more significant pullback could establish a more favorable long-term scenario.

In a YouTube video released on Friday, Balashevich indicated that Bitcoin might still decline to the $75,000 mark, asserting that social media sentiment remains too positive for a lasting bottom to be established.

A decline to that level would signify a decrease of approximately 15% from Bitcoin’s current value near $88,000, based on data from CoinMarketCap.

Bitcoin’s $75K Zone ‘Tempting’ as Trader Optimism Clouds Market Bottom

“It appears very appealing to approach it even more closely,” Balashevich remarked, referring to the $75,000 area.

His caution arises from what he characterized as ongoing confidence among traders that the recent downturn will swiftly reverse.

Balashevich stated that genuine market bottoms are typically characterized by widespread pessimism, frustration, and fear, rather than optimism.

“The crowd isn’t fearful enough for a bottom,” Santiment noted in a separate report issued the same day.

He highlighted retail-oriented online discussions where traders are already anticipating a renewed rally, referencing macroeconomic developments such as interest rate changes in Japan.

“They’re primarily discussing that bears have been caught and that we will continue to rise from here,” Balashevich commented. “These types of remarks are not what I wish to see.”

On Friday, Japan’s central bank raised interest rates to a 30-year peak of 0.75%, a decision that has historically been associated with significant corrections in Bitcoin.

Previous interest rate hikes in Japan have led to declines of around 20% in the cryptocurrency, heightening concerns that further downside could still occur.

Despite his short-term caution, Balashevich mentioned that a more substantial pullback could present a more appealing setup for traders.

A downward movement, he argued, would eliminate remaining optimism and potentially reset sentiment to levels more aligned with a sustainable recovery.

Analysts Split on Bitcoin’s 2026 Outlook as Market Signals Diverge

Not all analysts share this perspective. On Thursday, Jurrien Timmer, Fidelity’s director of global macro research, suggested that Bitcoin might “take a year off” in 2026, with prices possibly dropping as low as $65,000.

Conversely, others hold a more positive outlook. Matt Hougan, chief investment officer at Bitwise, has expressed his expectation that 2026 will be an “up year” for Bitcoin, citing long-term adoption trends.

Katherine Dowling, president of Bitcoin Standard Treasury Company, recently predicted that Bitcoin would reach $150,000 by the end of 2026, referencing “the trifecta of a positive regulatory environment, quantitative easing, and institutional inflows.”

Market indicators present a mixed scenario. The Crypto Fear & Greed Index has remained in “Extreme Fear” territory since mid-December, recording a score of 20 on Sunday.

At the same time, the Altcoin Season Index recently indicated a strong “Bitcoin Season” reading, suggesting that traders are shifting their focus to Bitcoin and away from higher-risk altcoins.

The post Bitcoin May Not Have Bottomed Yet as Social Media Fear Remains Low: Analyst appeared first on Cryptonews.