Bitcoin sentiment at record lows … Does it mean the price will go up?


A number of metrics indicate that social and trading sentiment for Bitcoin is still low despite its price breaking above $11,000 a couple of hours ago.

On-chain analytics provider, Santiment has revealed that weighted social sentiment for Bitcoin is at its lowest level for two years. The metric takes into account the overall volume of Bitcoin mentions on Twitter and compares the ratio of positive vs. negative commentary on the platform.

How To Get Free Crypto  

Social sentiment surged a few months ago when Bitcoin started its strong recovery following the mid-March pandemic induced market crash. However, for most of May, June, and July, when the asset was consolidating in the low $9k range, it fell into negative territory again.

The analytics provider noted that counter intuitively, negative sentiment at extremely low levels correlates with price rises, whereas extreme highs correlate with price retracements.

Bitcoin reached a 2020 high of $12,400 in mid-August, but has failed to top 2019’s peak of $13,800 leading a number of analysts to assert that the lower high on the long time frame indicates that we are not in a bull market just yet.

Another market sentiment gauge is the Bitcoin Fear and Greed Index which is currently showing a neutral reading of 48 at the time of writing. This metric is derived from a combination of factors such as volatility, market momentum and volume, social media interaction, market dominance, and current trend.

Coinbase Banner  

For most of August the index was in the “extreme greed” zone around 80 as Bitcoin traded in the high $11k range. Its lowest levels unsurprisingly were in March and April when “extreme fear” gripped global markets.

Popular charting platform Tradingview also has its own sentiment indicators for the asset derived from a number of technical indicators. On the daily and weekly views they are flashing buy signals whereas things are more neutral on the shorter time frames.

Bitcoin has been largely correlated to stock market movements for much of this year, however, the ‘September effect’ is a term that has come about because it is a historically weak month for stock market and cryptocurrency price returns (as Kraken pointed out in its most recent update). This could be reflected in social sentiment as reported by Santiment.

At the time of writing, Bitcoin was still trading just above $11k, a gain of 2.8% on the day and almost 8% on the week.

FreeBitcoin Banner  

Go to Source
Author: Martin Young

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.