A top crypto analytics firm says trader optimism has waned as the price of Bitcoin (BTC) continues to tumble this week, which some investors are interpreting as a positive sign toward market capitulation.
In a new blog post, Santiment notes the number of “buy the dip” mentions across crypto social media channels has diminished to a low level.
“Often the crowd unanimously call the dip/bottom earlier than the actual dip and the real bottoms forms when the crowd least expects [it], which is represented by low to no mentions in Buy The Dip. As of now the mentions are very low.”
Santiment also notes that traders are starting to favor shorting rather than longing on exchanges.
“This bearish funding rate can cause liquidations that shoot up prices in a hurry.”