Why Bitcoin's Rally Is Stalling Below $100,000

Top cryptocurrencies like Bitcoin BTC/USD, Ethereum ETH/USD, Solana SOL/USD, and XRP XRP/USD are seeing declining bullish sentiment despite rising cost bases for holders.

What Happened: Santiment data shows the crypto market sentiment, which had been bullish following a prolonged rally since September, cooling down, particularly for top-cap assets like Bitcoin and Ethereum.

Despite Bitcoin nearly hitting the $100,000 milestone, its recent price stagnation and social sentiment dip suggest a rise in pessimism among traders.

This shift occurred notably after the U.S. presidential election, where euphoria peaked but faded as Bitcoin ranged around $99,800.

While Bitcoin, Ethereum and Solana show modest gains, their social sentiment has dipped. XRP, despite breaking $1.60 for the first time in years, is also facing skepticism.

Smaller altcoins like Stellar XLM/USD, Polkadot DOT/USD and Celestia TIA/USD are gaining attention with significant market cap and social volume increases, drawing focus away from top caps.

Also Read: MicroStrategy Is The ‘Bitcoin Magnet,’ Says Bernstein, But Not Everybody’s Sold: ‘Nothing Is Free In Finance,’ Says One Analyst

Why It Matters: IntoTheBlock data shows that the battle for $100,000 Bitcoin continues as 458,000 addresses accumulated a significant 344,000 BTC.

This could be a strong foundation to fuel beyond $100,000. 60,000 addresses acquired 22,740 BTC above the current price.

Low sentiment often signals potential upside, while euphoric spikes tend to precede corrections. The crypto market's current phase reflects a temporary shift in focus rather than a long-term bearish turn.

What's Next: The Thanksgiving week slump might be setting the stage for a broader market correction, which could rejuvenate Bitcoin and other top assets.

As Santiment notes, when traders overlook Bitcoin for smaller pumping altcoins, it often marks the perfect setup for BTC to make a strong comeback.

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• Bitcoin’s Bull Run: Betting On A $125K Finish To 2024

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