Santiment Warns: Crypto Market Lows Defy Popular Predictions
According to Santiment, a crypto sentiment analysis platform, market bottoms rarely align with popular predictions. They advise caution when a consensus suggests a price bottom, noting that genuine lows typically form when most expect further declines.
Recently, Bitcoin's (BTC) dip below $95,000 amid a tech stock downturn sparked discussions about market lows. Santiment highlighted that traders often assume bottoms after psychological price thresholds, like Bitcoin falling under $100,000, are crossed.
Bitcoin Sentiment Declines
Despite bottom predictions, figures like BitMEX co-founder Arthur Hayes remain optimistic, forecasting Bitcoin to reach $200,000 by year-end. However, Santiment reports a drop in positive Bitcoin commentary, now at its lowest in a month. They note that Bitcoin's social dominance surged to over 40% amid fear-driven discussions.
Speculation surrounds recent Bitcoin price drops, with traders attributing them to Michael Saylor's rumored sell-off. Santiment observed a rise in mentions of "Saylor" on social media during this period.
Potentially Bullish ETF Outflows
Michael Saylor, in a CNBC interview, denied selling Bitcoin during a recent price crash. Santiment suggests that substantial Bitcoin ETF outflows could signal a bullish trend. They note that large outflows often coincide with market bottoms, indicating retail panic. Recent data shows US-based Bitcoin ETFs experienced $1.17 billion in outflows over three days, with Thursday marking the second-worst day on record.
Related: Bitcoin ETFs suffer second-worst day with $866M outflows, yet some analysts remain bullish