Cryptocurrency analytics platform Santiment is saying that one key metric indicates a bearish mood for Bitcoin (BTC).
Santiment says that the social dominance level of Bitcoin, or the discussion rate of Bitcoin relative to altcoins, is currently at 13.15%.
According to the analytics platform, crypto prices typically start to increase when the social dominance level is above 20%. Santiment further says that long-term traders are currently waiting for the flagship crypto asset’s social dominance level to go up again before potentially re-entering the market.
“Traders are chasing short-term pumps right now to salvage losses. Weak hands dropped out of crypto in 2022, and long-term traders are waiting for Bitcoin to begin receiving the spotlight again. When BTC social dominance is high, prices typically rise.”
Bitcoin is trading at $19,155 at time of writing, down 3.44% in the past day.
The crypto analytics platform also says that it has noted that throughout this month so far, digital asset prices have moved contrary to prevailing market sentiment.
According to Santiment, excessive bearish sentiment has resulted in crypto prices going up while excessive bullish sentiment has resulted in crypto prices falling.
“Though the long-term crowd sentiment has remained negative, swing trades in October have been dictated by how often bullish and bearish calls are happening. When social platforms show too much bearish sentiment, prices bounce. When bullish, prices drop.”
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Featured Image: Shutterstock/Jorm S
