Bitcoin Down 2% But Sentiment Could Spike 'Dramatically,' Analysts Say

Bitcoin's (CRYPTO: BTC) future looks set for gains, with industry leaders citing a surge in market sentiment and a growing trend of long-term holding, despite looming resistance levels, as the cryptocurrency trades at $86,550, down 2% in the past day.

Speaking with Benzinga, experts see key indicators aligning for upward movement through Q2 and beyond, driven by fresh capital and regulatory shifts.

Blake Jeong, Co-CEO of IOST, highlights the shifting sentiment captured by the Crypto Fear and Greed Index, which has moved from "extreme fear" to a neutral score of 47 within a week.

"If bullish sentiment continues to accelerate, we could see this sentiment gauge spike dramatically," he said, adding that institutional and retail inflows are helping to drive momentum. "Governments are beginning to acknowledge Bitcoin's long-term growth potential. It's a defining moment."

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Echoing that perspective, Vijay Pravin Maharajan, CEO of bitsCrunch, pointed to the rising 1Y+HODL wave indicator—tracking Bitcoin wallets that haven't moved funds for over a year—as a signal of increasing long-term conviction.

"The metric has climbed from 61.8% to 63.4% in recent weeks," Maharajan noted. "This reduced selling pressure is typically associated with bullish market phases and may indicate investors view current price levels as an attractive entry point."

Meanwhile, analysts at B2BinPay caution that while the market's current surge is encouraging, it may face headwinds.

"Bitcoin has climbed 6–7% in the past week due to optimism around regulatory clarity under the new U.S. administration," they noted.

However, key resistance levels at $90,700 and $93,700 could cap further upside in the short term.

The analysts also cited GameStop ( GME )'s entry into Bitcoin as a catalyst for price action across major altcoins like (CRYPTO: SHIB), (CRYPTO: SOL),and (CRYPTO: XRP).

"March has historically been a bullish month, but we may be approaching a near-term peak," they warned.

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