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Bitcoin Price Moves Against Traders’ Sentiment: Santiment

• Bitcoin price generally moves in the opposite direction of what traders anticipate, according to crypto sentiment analysis firm Santiment.
• Social media expressed disbelief on Sunday when Bitcoin briefly bounced to nearly $27,300, but today optimism has returned and is resulting in a top.
• Popular sentiment analysis tools include Santiment and the Bitcoin Fear & Greed Index, which currently stands at neutral 50.

Bitcoin Price Moves Contrary to Market Expectations

Crypto sentiment analysis firm Santiment has found that the price of Bitcoin (BTC) generally moves in the opposite direction of what traders anticipate. Last Sunday, social media expressed disbelief as BTC briefly bounced to nearly $27,300 – but today optimism has returned and “appears to be resulting in a top”.

Sentiment Analysis Tools

Popular sentiment analysis tools used by crypto traders include Santiment and the Bitcoin Fear & Greed Index. The latter considers input from different sources such as social media, Google searches, price momentum and volatility – it currently stands at neutral 50.

‘Trade Against the Crowd’

The general wisdom amongst traders is to ‘trade against the crowd’ whenever sentiment appears extreme either on the bullish or bearish side. This means trading against market expectations when they appear too optimistic or pessimistic for conditions at hand.

Price Movement

At the time of writing, Bitcoin was down some 2.2% over 24 hours and nearly unchanged for 7 days – an unusually stable period for BTC prices (data from CoinGecko).

Conclusion

Sentiment analysis can be useful tool for crypto traders trying to predict market movements – however it should not be seen as reliable indicator on its own given the unpredictability of markets.