The crypto market price direction has been curiously getting dictated by social platforms’ sentiment in October according to Santiment
Crypto market behavior analysis platform Santiment pointed out new data that ties the pendulous price action of the crypto market to sentiments on social platforms. In a tweet, Santiment stated that in October, price directions have been dictated by bullish and bearish calls on social platforms despite long-term sentiments being negative.
In particular, prices have moved in the opposite direction of the social media crowd’s sentiment. The data highlights October 7 when a high number of bearish calls were followed by a price bounce in the market, and October 8 and 11 when bullish social sentiments were followed by price drops.
🤔 Though the long-term crowd sentiment has remained negative, swing trades in October have been dictated by how often #bullish & #bearish calls are happening. When social platforms show too much bearish sentiment, prices bounce. When bullish, prices drop. pic.twitter.com/6s7yuJQeuV
— Santiment (@santimentfeed) October 12, 2022
The data is not surprising as market sentiment has been noted to have a strong effect on crypto, as Santiment data shows. Although they usually follow the pattern of bullish sentiments triggering fear of missing out (FOMO) that leads to price spikes; bearish sentiments lead to fear, uncertainty, and doubt (FUD) which is accompanied by dips.
Could Bitcoin be poised for a price surge based on the trend?
With the reversal of the roles the sentiments play in the market, Bitcoin (BTC) might be poised for a surge. At present, the Bitcoin fear and greed index which measures market sentiment is at a reading of extreme fear — in the strong bearish territory — per Alternative.me data.
While the general market sentiment is bearish, some observers have continued to remain bullish on BTC. BTC is trading at around $19,160, up 0.61% in the last 25 hours according to data from CoinMarketCap at the time of this writing.