Get the scoop on finance - sign up for mobile alerts
Trading
| On
March 7, 2023

Crypto Traders May Be Woefully Wrong on Bitcoin’s Next Big Move, According to Leading Analytics Firm

By Daily Hodl Staff

Leading analytics firm Santiment says a crucial metric suggests a wide swath of crypto traders who have turned negative on Bitcoin’s price path are wrong.

Following last week’s marketwide crypto correction, Santiment says that it spotted one of the highest levels of fear, uncertainty and doubt (FUD) among market participants over the weekend.

ADVERTISEMENT

“Some bizarrely high levels of negative crypto sentiment has appeared this weekend, particularly here on Twitter.

It’s hard to gauge what may be contributing to one of the highest levels of FUD Santimentfeed has ever recorded.” 

Source: Santiment/Twitter

According to the analytics firm, the huge spike in negative sentiment appears to be coming from Twitter as the hashtag “#cryptocrash” has been trending on the social platform.

Santiment says this level of sudden, bearish shifts in sentiment on the crypto markets is often a bullish signal.

ADVERTISEMENT

“Typically, you can capitalize on this level of negativity on the markets, and this kind of overwhelmingly bearish sentiment can lead to a nice bounce to silence the critics.” 

While the negative commentary may be on the up and up on Twitter, the intelligence firm finds that not all traders are betting on the crypto markets to continue going down.

“Traders are more of a mixed bag when it comes to shorting or longing the markets right now. So there could be something funky going on with an inflated amount of negative comments, even though perpetual contract funding rates on exchanges aren’t necessarily matching the sentiment.” 

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/iurii/Natalia Siiatovskaia