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.
Social sentiment surged a few months ago when Bitcoin started its strong recovery following the mid-March pandemic induced market crash.
The analytics provider noted that counter intuitively, negative sentiment at extremely low levels correlates with price rises, whereas extreme highs correlate with price retracements.
Generally, 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.
For most of August the index was in the "Extreme greed" zone around 80 as Bitcoin traded in the high $11k range.
Bitcoin has been largely correlated to stock market movements for much of this year the 'September effect' is a term that has come about because it is a historically weak month for stock market and cryptocurrency price returns.
Bitcoin sentiment at record lows Does it mean the price will go up?
Published on Sep 17, 2020
by Cointele | Published on Coinage
Mentioned in this article
Another mainstream company is seeking approval to invest in crypto
Anthony Scaramucci's investment firm, SkyBridge, seeks approval from the SEC to invest in crypto.
COVID-19 popularized decentralization, but blockchain may not catch on
On Nov. 9, drugmaker Pfizer announced that its COVID-19 vaccine is 90-plus percent effective, and even though it may be premature to proclaim the pandemic's end - as the virus continues to rage in the United States and Europe - once can at least speculate: Where will blockchain adoption stand when the crisis abates?
Bitcoin hits new 2020 high at $16.7K -Traders expect bigger breakout
The price of Bitcoin hit a new yearly high at $16,717 on Binance.
The next big crypto market could be fantasy sports, says Messari
As "Digitally native" ecosystems like esports continue to synergize with blockchain technology, industries like fantasy sports could be primed for mass adoption, says digital research firm Messari.