After the SEC's spot ETF approval, there was a correction in cryptocurrencies, especially Bitcoin.
At this point, while there is a general calm in the cryptocurrency market, the popular on-chain data platform Santiment stated that the downward negative sentiment prevailed in the market and investors last week and this week.
Santiment cited the market's inability to effectively exhibit the bullish pattern that traders have become accustomed to since the bull cycle that began last October as one reason why negative sentiment has prevailed.
Stating that the negative sentiment here has become even stronger for the largest cryptocurrencies Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Binance Coin (BNB), XRP and Cardano (ADA) due to the stagnation, Santiment said that this is not the case among the major cryptocurrencies. He underlined that a negative emotion appeared for the first time in more than six months.
Finally, Santiment pointed out that a bullish signal is hidden behind the increasing negativity towards BTC, ETH, XRP, BNB, ADA, and SOL.
At this point, Santiment stated that investors exhibiting anxiety, fear, uncertainty and FUD for more than one major cryptocurrency indicates that there is a high probability of a jump in the short term.
Santiment points out that there is a high probability of a jump in the market here and warns investors who are in a short position.
“There is a notable bearish sentiment pervading the crypto discourse this week, as crypto market values remain volatile and traders fail to display the usual bullish pattern they have become accustomed to since the bull cycle began in October.
Bitcoin, Ethereum, BinanceCoin, XRP, Cardano and Solana are in a more negative audience sentiment range compared to their historical averages. This is the first time this has occurred in more than 6 months.
When investors become anxious and show FUD across multiple major assets, it is a sign that market values are more likely to see an impending bounce.
“Markets have historically moved in the direction the crowd least expected, causing the rally to catch many short investors off guard.”
🐻 With #crypto market caps ranging and lacking the usual growth traders have been accustomed to since the #bullcycle began in October, there is a notable #bearish sentiment that has taken hold of #crypto discourse this week. #Bitcoin, #Ethereum, #BinanceCoin,
(Cont) 👇 pic.twitter.com/c3M4bPxlhi
— Santiment (@santimentfeed) February 5, 2024
*This is not investment advice.
