Crypto Analytics firm says a Bitcoin metric has turned bearish – but there’s a catch
Cryptocurrency analytics platform Santiment says a key value indicates a bearish sentiment for Bitcoin (BTC).
Sentiment says that the social dominance level of Bitcoin, or the discussion rate of Bitcoin relative to altcoins, is currently at 13.15%.
According to the analytics platform, crypto prices usually start to increase when the social dominance level is above 20%. Santiment goes on to say that long-term traders are currently waiting for the flagship crypto-asset’s social dominance level to rebound before potentially re-entering the market.
“Traders are chasing short-term pumps right now to recover losses. Weak hands fell out of crypto in 2022, and long-term traders are waiting for Bitcoin to start getting the spotlight again. When BTC social dominance is high, prices usually rise.”
Bitcoin is trading at $19,155 at the time of writing, down 3.44% in the last day.
The cryptanalysis platform too says that it has noted that throughout this month so far the prices of digital assets have moved contrary to prevailing market sentiment.
According to Santiment, excessive bearish sentiment has caused crypto prices to rise while excessive bullish sentiment has caused crypto prices to fall.
“Although long-term public sentiment has remained negative, swing trades in October have been dictated by how often bullish and bearish conversations occur. When social platforms show too much bearish sentiment, prices bounce. When it’s bullish, prices fall.”
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Featured image: Shutterstock/Jorm S
