Despite the sharp correction in bitcoin’s price a couple of days ago, sentiment remains positive.
In fact, this correction was expected by many, so much so that it didn’t really scare any professional investors.
A month ago the price of BTC was below $20,000, while the minimum peak touched during this correction was still above $30,000.
Furthermore, after having touched this minimum peak, the price practically rebounded immediately and returned to the area between $33,000 and $35,000.
The retracement does not seem to have affected the trend in the medium/long term, but for now it seems to have only interrupted the exaggerated growth trend in the short term.
Bitcoin sentiment according to eToro
Analyst Simon Peters of eToro reveals that although price fluctuations lately have been similar to those of 2017, investor sentiment remains positive. In contrast, between late 2017 and early 2018 there was a drastic flip-flop, which turned strong positive sentiment into strong negative sentiment, within a matter of days or weeks.
Peters points out that despite the short-term market correction, Bitcoin remains in good health still hovering around $35,000, which is far higher than not only the average price in 2020, but also only the average price in December.
„Numerous ‚crypto-skeptics‘ immediately thought that the Bitcoin bubble had burst, since the price seemed destined to fall below $30,000. An event that, however, did not materialize. Cryptocurrency enthusiasts have, for their part, reputed the braking of the correction as a victory, claiming that $30,000 can be considered as the new cryptocurrency base.“
However, he also adds that, in reality, according to him, it is still too early to say that $30,000 can be considered as a price base from which a new ascent can start.
Nevertheless, Peters goes on to say:
„Looking at Bitcoin from a long-term perspective, the sentiment on the cryptocurrency remains positive. It is likely that several investors have taken advantage of the recent decline to buy Bitcoin at a (relatively) low price. At the same time, retail investor sentiment continues to remain positive.“