Leading analytics firm Santiment says a crucial statistic suggests that a large number of crypto traders who have gone negative on Bitcoin’s price path are wrong.
Following last week’s market-wide crypto correction, Santiment says it noted some of the highest levels of fear, uncertainty, and doubt (FUD) among market participants over the weekend.
“This weekend has seen bizarrely high levels of negative crypto sentiment, especially here on Twitter.
It’s hard to gauge what might be contributing to one of the highest levels of FUD Santimentfeed has ever recorded.”
According to the analytics firm, the huge spike in negative sentiment appears to be coming from Twitter as the hashtag “#cryptocrash” is trending on the social platform.
Santiment says this level of sudden, bearish shifts in sentiment in the crypto markets is often a bullish signal.
“Usually you can capitalize on this level of negativity in the markets, and this kind of overwhelming bearish sentiment can lead to a nice uptick to silence the critics.”
While the negative commentary on Twitter is on the rise, the intelligence firm finds that not all traders are betting on crypto markets falling further.
“Traders are more of a mixed bag when it comes to shorting or longing the markets right now. So there may be something fishy about an inflated number of negative comments, even though perpetual contract funding rates on exchanges don’t necessarily match sentiment.
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Featured image: Shutterstock/iurii/Natalia Siiatovskaia