Bitcoin (BTC) sentiment on social media turned sharply negative on August 19 after the top cryptocurrency slipped below $113,000.<\/p>\n
However, analysts now suggest that the crowd\u2019s sudden bearish tilt could create a potential setup that historically favors contrarian investors.<\/p>\n
According to data analytics platform Santiment, the mood across crypto communities on social platforms has turned<\/a> from bullish to ultra bearish, following Bitcoin\u2019s failure to hold above $113,000.<\/p>\n Santiment reported that August 19, which saw BTC trading around $112,647 at one point, became the day with the most negative social media sentiment since June 22, when geopolitical tensions triggered a wave of panic selling.<\/p>\n The firm\u2019s metrics showed a clear flip, with negative commentary on BTC outpacing positive remarks for the first time in weeks. This type of extreme crowd fear, Santiment suggested, has frequently come just before a market recovery, positing that prices often move in the opposite direction of crowd expectation.<\/p>\n This pattern was evident in June when the panic over U.S. airstrikes proved to be an excellent moment to buy<\/a> the dip, and again in July when continued optimism was followed by a decline.<\/p>\n The market intelligence platform is now suggesting that with the crowd seemingly giving up in this latest rout and panic selling, it could be a good sign of an \u201cactual upcoming dip bounce.\u201d<\/p>\n \u201cHistorically, this negative sentiment is a good thing for the patient traders who have been waiting for an opportunity to buy or add on while there is \u2018blood in the streets\u2019 and fear is maximized.\u201d<\/p>\n This psychological shift is also reflected in on-chain behavior. According to a recent analysis by CryptoQuant, BTC holders of 3 to 5 years, who bought during the 2021 cycle, are acting<\/a> with the impatience of novice traders. Even though they have been classified as long-term holders, their tendency to sell during drawdowns is indicative of weaker hands, and questions are being asked about how they could affect market directions.<\/p>\n Bitcoin\u2019s price action tells the story of this sudden sentiment drop. After establishing a new all-time high of $124,457 just six days ago, the OG crypto has since pulled back by approximately 8.5%.<\/p>\n Over the past seven days, BTC has decreased by 4.9%, with its weekly price range fluctuating from close to $124,000 to under $112,000 according to data from CoinMarketCap. However, even with this recent weakness, Bitcoin\u2019s yearly performance is nothing to sniff at, with the asset gaining 87.4% in that time.<\/p>\n Furthermore, its nearly 5% weekly loss isn\u2019t as bad as the global crypto market\u2019s collective 8.1% drop in the same period, indicating a relative strength that suggests capital may not be entirely fleeing the ecosystem but simply rotating.<\/p>\n The post Is This the Moment to Buy Bitcoin as BTC Sentiment Sinks to Fear?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin (BTC) sentiment on social media turned sharply negative on August 19 after the top cryptocurrency slipped below $113,000. However, analysts now suggest that the crowd\u2019s sudden bearish tilt could create a potential setup that historically favors contrarian investors. A Dramatic Shift in Market Psychology According to data analytics platform Santiment, the mood across crypto […]<\/p>\n","protected":false},"author":0,"featured_media":89826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-89825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/89825"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=89825"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/89825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/89826"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=89825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=89825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=89825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Analyzing the Price Trajectory<\/h2>\n