Santiment Evaluates the Latest Drop: “FUD Comes into Action in Bitcoin!”

Bitcoin continues to fall due to the “sell the news” event in the face of expectations of a price increase following the spot ETF approval.

At this point, while BTC first fell below the important psychological level of $ 40,000, this decline continued until $ 39,000.

Evaluating the decline in BTC, Santiment pointed out that Bitcoin fell to these price levels for the first time since December 2023 and described this decline as a bloodbath.

Santiment also stated that there was a decrease in BTC and Ethereum (ETH) conversations compared to the ETF approval week, and said that FUD was starting to rise and argued that this could be a bullish signal.

“Bitcoin fell below $40,000 for the first time since December. Monday turned into a bloodbath for most of the cryptocurrency industry.

Specifically, compared to the previous ETF approval week, conversations for BTC were down 35% and conversations for ETH were down 21%.

“This indicates that FUD is starting to rise, and when FUD reaches its peak, it starts to kick in, creating nice price bounce opportunities.”

Given that historically there has been a positive correlation between the level of FUD and the likelihood of a price bounce, Santiment analysts point out that as FUD establishes, the likelihood of a price bounce increases.

📉 #Bitcoin briefly fell below $40K for the first time since December 4th. Monday has been a bloodbath for most of the #crypto sector. Notably, there is 35% less discussion toward $BTC and 21% less toward $ETH compared to the prior #ETF approval week. #FUD is

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— Santiment (@santimentfeed) January 22, 2024

*This is not investment advice.