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10 days ago

Bitcoin sentiment at record lows … Does it mean the price will go up?

Social media sentiment for Bitcoin has slumped to a two year low yet technical indicators are still saying ‘buy’

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. However, for most of May, June, and July, when the asset was consolidating in the low $9k range, it fell into negative territory again.

The analytics provider noted that counter intuitively, negative sentiment at extremely low levels correlates with price rises, whereas extreme highs correlate with price retracements.


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