Analytics: Bitcoin positive mentions in social networks are at all-time low

Share on facebook
Share on twitter
Share on linkedin
Share on print
Share on email

Metrics reflecting the sentiment of cryptocurrency investors are at the lowest level. This may indicate the prevalence of negative moods and long stagnation on the cryptocurrency market.

According to analyst firm Santiment, metrics that provide an idea of ​​market sentiment remain at their lowest level since the beginning of September.

“As BTC has crossed above $11,000 for the first time since September 3rd, the sentiment of Bitcoin on Twitter is surprisingly at an all-time low, according to our weighted calculation that takes into account the overall volume of BTC mentions vs. the ratio of positive vs. negative commentary on the platform. Generally, negative sentiment at extremely low levels correlates with price rises, whereas extreme highs correlate with price retracements.”

Analysts take into account the number of mentions and categorize them into positive and negative. As a rule, the dominance of positive sentiments correlates with an increase in cryptocurrency prices, while negative ones reflects bear dominance in the crypto market.

In 2020, investor sentiment on the crypto market changed dramatically several times, becoming either predominantly negative or predominantly positive. The sharpest and most powerful surge in positive sentiment coincided with the rise in the bitcoin rate in April after the March collapse, but in May, June and July, it was replaced by the dominance of negative sentiment due to the inability of bitcoin to overcome the $10,000 mark. In August, with the consolidation of the cryptocurrency rate above $10,000, the mood of market participants again became predominantly positive. But in September negative sentiments returned to prevail.

Via: 2Coinfox.info

Leave a Replay