Several metrics show that Bitcoin’s social and trading sentiment is still low. This is despite its price breaking more than $11,000 a couple of hours ago.
On-chain analytics provider Santiment has announced that Bitcoin’s weighted social sentiment is at its lowest level for two years. The metric considers the overall volume of Btc mentions on Twitter and compares the positive vs. negative commentary ratio on the platform.
A few months ago, social sentiment rose when Bitcoin began its sharp rebound following the pandemic-induced market crash in mid-March. However, for most of May, June, and July, when the asset was mixing in the low $9,000 range, it dropped into negative territory again.
The analytics provider remarked that the negative sentiment at extremely low levels correlates with counterintuitive price increases.
The analytics provider noted that the negative sentiment at extremely low levels correlates with counterintuitive price rises. In contrast, extreme highs correlate with price retracements.
we are not in a bull market
During 2020, Bitcoin hit a high of $12,400 in mid-August. However, it has failed the top 2019’s high of $13,800, leading several analysts to declare that the lower high on the longtime frame shows that we are not in a bull market just yet.
Another market sentiment measure is the Bitcoin Fear and Greed Index, which is currently showing a neutral reading of 48.
For most of August, the index stood in the extreme greed zone at about 80 as Bitcoin traded in the high $11,000 range. Its lowest levels were in March and April when “extreme fear” gripped global markets.
Tradingview also has its sentiment indicators for the asset derived from some technical indicators. On the daily and weekly pictures, they are flashing buy signals, while things are more neutral on the shorter time frames.
According to the latest news, BTC was trading more than $11,000. It has boosted by 2.8% during the day and 8% during the week.