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.
“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.”
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.
“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.”
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Featured Image: Shutterstock/iurii/Natalia Siiatovskaia
Source: https://dailyhodl.com/2023/03/07/crypto-traders-may-be-woefully-wrong-on-bitcoins-next-big-move-according-to-leading-analytics-firm/