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.”
Source: SantimentSantiment 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.”
