Bitcoin is making waves since the spread of Covid-19. The major crypto-asset seemingly offering buying opportunities for risk takers and fortune hunters according to open-ended speculations.
The recent tweet by Santiment- one of the behavior analytics platforms for cryptocurrencies that creates reports via sourcing on-chain, social, and development information on 900+ coins indicated that BTC FUD and unenthusiastic social media sentiments are just the preceding results of Bitcoin to bounce back soon.
The firm mentions that Santiment price chart analysis giving an impression that Bitcoin, Ethereum, and other crypto-assets are going to bounce back precipitously and towards the recovery level. After the past weekend, Bitcoin has already recovered by 2.4% so far.
“Prices of $BTC and other crypto assets tend to bounce most precipitously when the crowd is demonstrating a high level of FUD. This is exactly what we’ve been seeing for Bitcoin, Ethereum, and many altcoins following the early September retrace.”
According to the firm, the best buying break comes when an average trader is down in sentiments, both psychologically and financially, and at the same time afraid to take any decisive actions. The same scenario happened on 2nd September when total crypto market capitalization dipped by $60 billion dollars and soon thereafter the markets retraced.
The situation is also considered a good opportunity for the whales who wants to have the pie at the earliest possible.
On Sep 16, Santiment tweeted about the impact of negative social sentiments on the price of Bitcoin along with other crypto assets. In early Sep, Bitcoin retraced to $11,000 after it plunged to $10,000.
“Generally, the negative sentiment at extremely low levels correlates with price rises, whereas extreme highs correlate with price retracements.”
The company in a blog explains the work ethics which it follows to decide on the speculations, how it measures, and weights the social sentiments towards Bitcoin including other social volume metrics that help the users to maximize the dip buy and get the profit.