One Metric Hinting at Opportune Time To Accumulate Bitcoin (BTC) and Altcoins: Santiment
Crypto data platform Santiment is offering insight into the signals that could indicate the right time to accumulate Bitcoin (BTC) and altcoins.
Santiment marketing director Brian Quinlivan says that buying opportunities for crypto assets have historically presented themselves when trader sentiment is neither pessimistic nor optimistic across the major social media platforms such as Reddit and X.
“When all four social platforms align and have settled back down to neutral mentions of buying the dip, this is when the actual opportunity has historically presented itself for patient traders…
Believe it or not, it’s a good sign that people are no longer certain that this is a dip buy spot. It means that pessimism is beginning to take over again as market caps fade.”
According to Quinlivan, optimism in the crypto community was high immediately after Bitcoin fell close to $26,000 for the first time since June. But the sentiment quickly changed.
“What has happened following the Bitcoin drop to $26,100, and subsequent altcoin bloodbath?…
For starters, it’s no surprise that we saw a huge rise in ‘buy the dip’ mentions. This indicates that trader optimism was quite high that there would be a quick market recovery. But look at how the wishful thinking has died down considerably in the past few days.”
Source: Santiment
On the level of discussion that Bitcoin and altcoins are currently experiencing, Santiment’s director of marketing says,
“We can also see that the percentage of discussions related to Bitcoin spiked to its highest level of the year on the tail end of the market crash. However, instead of BTC social dominance staying high, it has quickly dropped back down to relatively normal levels as traders appear to be showing some “greed” in relation to whatever the hot altcoins on the block are currently.
We would actually like to see Bitcoin social dominance stay quite high, as this scenario is usually correlated with thriving and healthy crypto markets. High discussion related to the number one asset coincides with fear, whereas discussions about more speculative assets tend to coincide with greed. Fear is when markets rise.”
Source: Santiment
Bitcoin is trading at $26,033 at time of writing.
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The post One Metric Hinting at Opportune Time To Accumulate Bitcoin (BTC) and Altcoins: Santiment appeared first on Crypto News Australia.
Filed under: Bitcoin - @ August 23, 2023 3:04 pm