Last week, the cryptocurrency market suffered a massive crash and Bitcoin fell sharply to $25,000.
While the $25,000 level was referred to as the bottom among investors, Santiment shared about investor sentiment.
Stating that investor sentiment is still driving the markets at this point, Santiment said that there was a large increase in “buying from the bottom” statements during the collapse.
Santiment stated that this increase shows that the optimism of the investors that the market will recover quickly is quite high.
Pointing out that this situation has decreased significantly in the last few days, Santiment continued his words as follows:
It's no surprise that we're seeing a huge spike in post-bearing 'buy at the bottom' statements.
This indicates that investors are highly optimistic that the market will recover quickly.
However, in the last few days, this rate has drastically decreased. It's a good sign that traders are no longer sure this is a dip.
This means that pessimism is starting to dominate the market again.”
Noting that the sentiment of buying dips has risen, however, on social platforms, Santiment said, “As the sentiment of bottom-buying aligns across its social platforms and returns to neutral words, this is the time when real opportunity has presented itself for historically patient traders, and that sentiment has slowly started to wane. ” said.
Finally, stating that the percentage of discussion about Bitcoin has increased, Santiment pointed out that it is a good sign that Bitcoin's social dominance remains quite high.
At this point, Santiment stated that loud discussions about BTC overlap with fear, while discussions about altcoins, which are more speculative assets, tend to overlap with greed.
“Fear is when the markets go up,” Santiment said.
📉 Even when traders are praying that markets fall so they can get discounted #Bitcoin, many feel second thoughts when presented with the actual opportunity to #buythedip. Our latest insight covers the sentiment shift as a result of last week's drop. https://t.co/bJs0KLd7d1 pic.twitter.com/9wxJB4RI5A
— Santiment (@santimentfeed) August 22, 2023
*Not investment advice.
