Crypto traders could be horribly wrong on Bitcoin’s next big move, according to leading research firm
Leading research firm Santiment says a crucial calculation suggests that a large number of crypto traders who have turned negative on Bitcoin’s price trajectory are wrong.
Following last week’s market-wide crypto correction, Santiment says it detected 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 have emerged this weekend, especially here on Twitter.
It is difficult to measure what can contribute to one of the highest levels of R&D Santimentfeed has ever recorded.”
According to the research firm, the huge increase in negative sentiment appears to be coming from Twitter as the hashtag “#cryptocrash” has been trending on the social platform.
Santiment says that this level of sudden, bearish changes in sentiment in the crypto markets is often a bullish signal.
“Usually you can take advantage of this level of negativity in the markets and this kind of overwhelming bearish sentiment can lead to a nice rebuttal to silence the naysayers.”
While the negative commentary may be on the up and up on Twitter, the intelligence firm finds that not all traders are betting that the crypto markets will continue to decline.
“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 commentary, although perpetual contract funding rates on exchanges don’t necessarily match the sentiment.”
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Featured image: Shutterstock/iurii/Natalia Siiatovskaia
