Bitcoin Drops, But Forecasts Predict $118,000 Before 2025

The world of cryptocurrencies is in turmoil as mentions of “Buy the Dip” on social media reach their highest level in eight months. According to recent data, this trend was observed after the price of BTC fell below the psychological threshold of $100,000 on December 19, 2024. However, is a new ATH at $118,000 before 2025 feasible?

Why the surge of “Buy the Dip” on social media as bitcoin falls?

Bitcoin, which recently reached the historic mark of $107,600, eventually dropped to $95,500, sparking a wave of discussions about the opportunity to buy at this price level. Mentions of “Buy the Dip” then reached a social dominance score of 0.061, the highest since April 2024, when BTC had fallen below $70,000. Additionally, global searches for “buy the dip” even reached a score of 38, the highest level since August 2024.

This increase in mentions of “Buy the Dip” reflects an optimistic attitude among investors and traders, who see this drop in bitcoin as a buying opportunity. However, this trend could also signal increased short-term volatility. Charles Edwards, founder of Capriole Fund, pointed out that the market could become extremely bearish before potentially rebounding, triggering a “short squeeze.”

BTC at $118,000 before the new year?

Current forecasts indicate that bitcoin could well rebound before New Year, with price projections reaching up to $118,149 by December 31, 2024. However, market volatility remains high during this end-of-year period, and investors must remain cautious in the face of potential fluctuations.

The recent drop in bitcoin below $100,000 has reignited investor interest in buying the dip, as evidenced by mentions on social media. While this trend reflects persistent optimism, it could also indicate a period of increased volatility for the BTC. Therefore, investors should closely monitor market movements.