u.today
Crypto market behavior analysis platform Santiment pointed out new data that ties the pendulous price action of the crypto market to sentiments on social platforms. In a tweet, Santiment stated that in October, price directions have been dictated by bullish and bearish calls on social platforms despite long-term sentiments being negative.
In particular, prices have moved in the opposite direction of the social media crowd's sentiment. The data highlights October 7 when a high number of bearish calls were followed by a price bounce in the market, and October 8 and 11 when bullish social sentiments were followed by price drops.
🤔 Though the long-term crowd sentiment has remained negative, swing trades in October have been dictated by how often #bullish & #bearish calls are happening. When social platforms show too much bearish sentiment, prices bounce. When bullish, prices drop. https://t.co/z4dt4VkFV7 pic.twitter.com/6s7yuJQeuV
— Santiment (@santimentfeed) October 12, 2022
The data is not surprising as market sentiment has been noted to have a strong effect on crypto, as Santiment data shows. Although they usually follow the pattern of bullish sentiments triggering fear of missing out (FOMO) that leads to price spikes; bearish sentiments lead to fear, uncertainty, and doubt (FUD) which is accompanied by dips.
Could Bitcoin be poised for a price surge based on the trend?
With the reversal of the roles the sentiments play in the market, Bitcoin (BTC) might be poised for a surge. At present, the Bitcoin fear and greed index which measures market sentiment is at a reading of extreme fear — in the strong bearish territory — per Alternative.me data.
While the general market sentiment is bearish, some observers have continued to remain bullish on BTC. BTC is trading at around $19,160, up 0.61% in the last 25 hours according to data from CoinMarketCap at the time of this writing.