A number of indicators indicate that the social and business sentiment of Bitcoin is still low, despite the price exceeding $ 11,000 two hours ago.
The analysis provider across the Santiment network has shown that weighted social attitudes to Bitcoin are at their lowest level in two years. The calculation takes into account the total volume of Bitcoin signals on Twitter and compares the percentage of positive comments with negative ones on the platform.
Social sentiment picked up a few months ago when Bitcoin began a solid recovery after the pandemic-driven market crash in mid-March. However, for most of May, June and July, when the asset consolidated to $ 9,000 low, it fell back into negative territory.
The analyst provider noted, contrary to what one might expect, that negative sentiment at very low levels is correlated with higher prices, while higher highs are associated with rebound.
Bitcoin peaked at $ 12,400 in 2020 in mid-August, but failed to reach a high of 2019 at $ 13,800, prompting a number of analysts to confirm that a lower long-term rally indicates that we are not bullish. market. … Until now.
Another indicator of market sentiment is the Bitcoin Fear and Greed Index, which at the time of writing is neutral at 48. This indicator is based on a combination of factors such as volatility, market dynamics and volume, engagement on social media, market dominance and current trend.
For most of August, the index was in a state of “extreme greed” of around 80 when bitcoin traded in the $ 11,000 range. Not surprisingly, they were at their lowest in March and April, when “strong fears” prevailed in global markets.
The popular charting platform Tradingview also has its own sentiment indicators that were originally taken from a number of technical indicators. On daily and weekly viewing, it highlights buy signals, while on shorter time frames it is more neutral.
Bitcoin has mainly been associated with stock market movements most of the year; However, the term “September effect” came about because it is a historically weak month for the stock market and the performance of cryptocurrency (as Kraken noted in its latest update). This can be reflected in social feeling, reports Santiment.
At the time of writing, Bitcoin is still trading just over $ 11,000, up 2.8% in a day and about 8% in a week.