value of bitcoin (btc) Crypto usually moves in the opposite direction to what traders expect, sentiment analysis firm Sentiment has found.
Writing on Twitter earlier this week, Santiment said the fact that bitcoin’s price moves contrary to what “the crowd” expects is something it has seen many times, and most recently this past weekend. .
Sentiment wrote that last Sunday, bitcoin briefly jumped to nearly $27,300 when traders expressed “disbelief” on social media.
However, today that situation has changed and optimism has returned to the market.
Sentiment explained in the tweet that it appears to be “resulting in a top”.
Data from CoinGecko shows that at the time of writing, bitcoin is down about 2.2% over the past 24-hours, trading around the $26,700 level.
After a week with an unusually stable bitcoin price, for the past 7 days, the price has been virtually unchanged.
What Sentiment Does As sentiment analysis is a relatively popular method to use among crypto traders, common sense is to trade ‘against the crowd’ whenever sentiment appears to be bullish or bearish.
A commonly used tool in addition to sentiment is the Bitcoin Fear and Greed Index, which considers input from a variety of sources including social media, google searchesPrice momentum and volatility.
At the time of writing, the Bitcoin Fear and Greed Index stood at exactly 50, indicating neutral sentiment among market participants.