Bitcoin
BTC$47 309.00

-0.34%

Ethereum
ETH$3 417.43

-3.80%

Cardano
ADA$2.36

-2.78%

Binance Coin
BNB$410.66

-3.23%

Tether
USDT$1.000311

-0.03%

XRP
XRP$1.068824

-2.35%

Bitcoin FUD and negative social sentiment typically precede a bounce


23 Sep 2020   #Bitcoin

Social media sentiment for Bitcoin has slumped to two year lows which is good for those wanting to go against the crowd. On-chain analytics provider Santiment asserts that Bitcoin and crypto assets tend to bounce when social sentiment indicates there is a lot of fear, uncertainty and doubt, which suggests that now is a buying opportunity.

According to its Bitcoin weighted social sentiment against price chart, this is exactly what is currently going on. Since its weekend lows, Bitcoin prices have recovered around 2.4% to current levels. It added that this is what has been happening since early September when markets plunged $60 billion in terms of total market capitalization.

“This is exactly what we've been seeing for #Bitcoin, #Ethereum, and many #altcoins following the early September” The analytics provider added; “Generally, the best buy opportunities in crypto come when the average trader is down, both psychologically and financially. This is what our metrics currently indicate,”

Following the early September slump, when there was also a lot of negative social sentiment, Bitcoin recovered around 12% to top out over $11k, and the same could happen again.

This latest plunge a couple of days ago has resulted in a much smaller drop off for Bitcoin prices with just 7.5% lost to its low of $10,300.

Santiment added that Bitcoin's weighted social sentiment on Twitter continues to hover around near two year lows indicating that there are a lot of doubters in the price level, keeping support at the mid-$10k zone. This would be good news for whales, the report added, which tend to go against the crowd.

There was a similar opportunity with Ethereum where sentiment is also close to two-year lows. The metric is derived using a machine learning model on a large Twitter dataset containing over 1.6 million tweets which are ranked as positive or negative.

The analytics provider also referenced another metric called MVRV which is a ratio that calculates the average profit and loss of different holders to determine whether a coin is currently over or under bought. It indicates that more people are currently down which could be a good entry point as there is an average return of negative 3.5% for traders over the past 30 days.

Additionally, the Bitcoin Fear and Freed Index has now dropped into the fear zone at 43 which confirms the findings.

Trader and Blockroots co-founder, Cantering Clark, stated that the current situation could be shaping up as a bear trap and Bitcoin could be seeing relief in the near future;

“If you ask me, that looks like an optimal way to set up a trap for any systematic shorts that would get the green light at that point.”

Bitcoin investor Lark Davis says that regardless of what crypto markets are doing, September is usually a bad month for stock markets and Bitcoin’s correlation could lead to some rocky weeks ahead; At the time of writing, Bitcoin was trading at $10,500, up 0.5% on the day but down 2.7% on the week.

Source


Related

Bitcoin sees quite healthy consolidation on $200M BTC options expiry day
Bitcoin has now been above $10K for a whole year
Bitcoin bulls look to profit from Friday’s $195M BTC options expiry
Bitcoin steals $47K from bears as critical BTC price resistance crumbles
Tight crypto market range as compressed spring
Bitcoin price flirts with $40K, but derivatives data is still bullish
Here are the BTC price levels to watch as $38K emerges as bulls' line in the sand
Bitcoin does not make a great deal of sense
Without confirmation from BTC, altcoin’s growth could be a trap

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 86% 25 $47 309.00 -0.34% 3.45% $890 282 304 276 $28 604 177 175
2 Ethereum (ETH) ETH Ethereum predictions 75.6% 52 $3 417.43 -3.80% 2.40% $401 762 910 383 $17 646 542 653
3 Cardano (ADA) ADA Cardano predictions 65.6% 64 $2.36 -2.78% -2.84% $75 436 036 466 $2 527 629 911
4 Binance Coin (BNB) BNB Binance Coin predictions 65.6% 70 $410.66 -3.23% 0.71% $69 047 505 721 $1 529 493 534
5 Tether (USDT) USDT Tether predictions 92.8% 1 $1.000311 -0.03% 0.01% $68 275 219 498 $68 719 586 559
6 XRP (XRP) XRP XRP predictions 74.4% 54 $1.068824 -2.35% -0.63% $49 830 976 158 $3 095 745 091
7 Solana (SOL) SOL Solana predictions 59.6% 89 $140.85 -8.67% -21.28% $41 807 570 521 $4 476 422 451
8 Polkadot (DOT) DOT Polkadot predictions 58.8% 82 $33.75 -2.64% 13.72% $33 334 610 376 $2 364 524 077
9 Dogecoin (DOGE) DOGE Dogecoin predictions 66.8% 66 $0.241375 0.88% -1.42% $31 698 380 856 $2 261 087 296
10 USD Coin (USDC) USDC USD Coin predictions 91.6% 1 $1.000295 0% 0.01% $29 327 554 493 $2 829 894 541
11 UniSwap (UNI) UNI UniSwap predictions 74% 57 $24.63 -5.61% 9.59% $15 063 186 503 $544 649 320
12 Avalanche (AVAX) AVAX Avalanche predictions 66.4% 69 $63.96 -1.40% 31.61% $14 090 119 806 $1 999 312 778
13 Terra (LUNA) LUNA Terra predictions 65.2% 67 $34.98 -7.58% -13.63% $14 051 719 431 $1 166 758 123
14 Binance USD (BUSD) BUSD Binance USD predictions 92.4% 1 $1.000213 -0.02% 0% $12 829 052 361 $5 673 496 967
15 Chainlink (LINK) LINK Chainlink predictions 69.2% 58 $28.20 -5.81% 3.88% $12 787 409 198 $1 485 225 154

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.