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Crypto Capitulation Is Close as Bullish Sentiment Wanes: Analytics Firm Santiment

Analytics

dailyhodl.com 23 February 2022 18:56, UTC
  
Reading time: ~2 m

A top crypto analytics firm says trader optimism has waned as the price of Bitcoin (BTC) continues to tumble this week, which some investors are interpreting as a positive sign toward market capitulation.

In a new blog post, Santiment notes the number of “buy the dip” mentions across crypto social media channels has diminished to a low level.“Often the crowd unanimously call the dip/bottom earlier than the actual dip and the real bottoms forms when the crowd least expects [it], which is represented by low to no mentions in Buy The Dip. As of now the mentions are very low.”

Source: Santiment

Santiment also notes that traders are starting to favor shorting rather than longing on exchanges.

“This bearish funding rate can cause liquidations that shoot up prices in a hurry.”

Source: Santiment

Other crypto analysts are less optimistic. Pseudonymous trader Kaleo tells his 473,100 Twitter followers that Bitcoin is looking weak, and it is “only a matter of time” before the top crypto asset’s sell-off accelerates.

“BTC found support at the base of the Feb 3rd lows where we saw the bullish leg up. Macrostructure still looks weak, and I wouldn’t find any confidence in this bounce until a break above $40K. Still expecting this to slowly bleed out until a breakdown to ~$32K.”

Bitcoin is trading at $37,603.67 at time of writing, up more than 3% in the past 24 hours.


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