Crowd’s Pessimism a Positive Sign
Despite Bitcoin’s recent rally, market intelligence firm Santiment observes a shift in sentiment, with fewer people optimistic about the cryptocurrency’s long-term prospects. Historically, this has been a bullish indicator.
“When the crowd is less optimistic, the probability of a continued market rise increases,” notes Santiment.
Bearish Expectations Favor Bulls
The firm advises Bitcoin bulls to welcome negative market sentiment.
“Markets tend to move in the opposite direction of crowd expectations,” explains Santiment. “So, times of low confidence can present buying opportunities.”
Silk Road Bitcoin Sales a Concern
Santiment attributes Bitcoin’s recent dip to the government’s sale of 10,000 BTC seized from Silk Road. However, the firm notes that such selloffs have historically triggered price spikes.
“When the crowd becomes anxious about Silk Road Bitcoin, we often see immediate market rises,” says Santiment.
Bitcoin’s Current Value
At the time of writing, Bitcoin is trading at $67,905, slightly down from the previous day.
