The price of Bitcoin (BTC) traditionally moves in the opposite direction of what traders anticipate, cryptocurrency sentiment analysis company Santiment has found.
Writing on Twitter platform earlier this coming week, Santiment stated that the fact that BTC’s price moves contrary to what “the crowd” expects is something that has been seen numerous times, and most recently this past weekend.
Last Sunday, Bitcoin (BTC) briefly bounced to nearly $27,300, as traders expressed “disbelief” in social media, Santiment wrote.
Today, on the other hand, that situation has turned, and optimism has returned to the market.
This seems to be “resulting in a top,” Santiment pointed out in the tweet.
At the time of publication, Bitcoin (BTC) was down some 2.2 percent in the previous 24 hours, trading around the $26,700 level, data from CoinGecko showed.
During the previous 7 days as a whole, the price is nearly unchanged, after what has been a week with unusually stable Bitcoin (BTC) prices.
Sentiment analysis like what Santiment does is a relatively trending method to use between cryptocurrency traders, with the general wisdom being to trade ‘against the crowd’ whenever sentiment appears extreme either on the positive tendency or bearish side.
A commonly used tool in addition to Santiment is the Bitcoin (BTC) Fear & Greed Index, which considers input from different sources, including social media, Google searches, price momentum and volatility.
At the time of publication, the Bitcoin (BTC) Fear & Greed Index stood at exactly 50, indicating neutral sentiment between market participants.
