- Santiment has identified ongoing high negative cryptocurrency sentiment.
- Most of the negative sentiment pouring into the cryptocurrency industry comes from Twitter.
- Bulls can take advantage of this level of negativity in the market by trading the rebound.
Santiment, a market intelligence platform based on social indicators and on-chain data, has identified persistently high negative cryptocurrency sentiment. In a tweet, Santiment confirmed it was hard to ascertain the main reason the company described it as one of the highest levels of his FUD ever recorded.
From social analysis, Santiment observed that the majority of the negative sentiment being pumped into the cryptocurrency industry comes from Twitter. With most crypto-related tweets suggesting a bear market, many crypto Twitter users seem to be using language that fosters fear and uncertainty in the crypto markets.
According to Santiment, there have been an unusually high number of negative comments on Twitter regarding the cryptocurrency market. #cryptocrash was a major hashtag that was perpetually trending on the platform long before the Bitcoin price dropped his 5% last Friday.
In a bullish tone, Santiment’s in-house crypto market analyst, who has the identity “brianq,” told readers that bulls can take advantage of this level of negativity in the market by trading bouncebacks. And this overwhelming negativity can lead to a nice bounce that silences critics.
Brianq advised crypto enthusiasts to keep an eye on funding rates given that negative comments surrounding the cryptocurrency market can lead to inflation. He also noted that there can be a lot of indecision among traders about whether to short or covet the market right now.
Some respondents under Santiment’s original tweet attributed negative sentiment to the Silvergate crisis and the SEC’s recent declaration that all altcoins must be classified as securities.
The post that Santiment identifies unusual negative sentiment in the crypto market first appeared on Coin Edition.
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