Bitcoin (BTC) Bullish Metric Signals Potential Upward Trend – Santiment
Data from analytics platform Santiment suggests that a significant indicator currently shows a positive signal for Bitcoin (BTC), similar to the one observed in November 2022.
Santiment notes that the level of fear in the digital assets space, based on the popularity of crypto-related terms, resembles the period following the collapse of FTX last year, which ultimately marked the market bottom.
🔐 One of the primary signs of fear is when the top trending #crypto keywords are almost all related to hardware wallets & security. We saw similar safety concerns from traders in November 2021 after the @FTX_Official collapse. That marked a market bottom. https://t.co/0MIfQq1TSd pic.twitter.com/nFIeAwmVPf
— Santiment (@santimentfeed) May 19, 2023
In November 2022, after the FTX collapse, traders expressed similar safety concerns. This period served as a turning point for the market. One prominent indication of fear is the prevalence of trending crypto keywords related to hardware wallets and security.
Santiment also observes increased social media discussions about Bitcoin as its price recently declined to the $26,000 level. This surge in chatter is seen as another signal suggesting a potential rebound for BTC in the near future.
😱 With #Bitcoin revisiting the $26k level, traders are showing increased worries of prices falling back to the $20k to $25k range. $BTC social dominance has jumped high again, typically a sign of fear. Fear signals increase the probability of a rebound. https://t.co/hwDaEwsmLf pic.twitter.com/zj6j9HKfN9
— Santiment (@santimentfeed) May 18, 2023
With Bitcoin revisiting the $26,000 level, traders have heightened worries about prices dropping back to the $20,000 to $25,000 range. Additionally, there has been a significant rise in BTC’s social dominance, which typically indicates fear. These fear signals enhance the probability of recovery.
Lastly, Santiment points out that Bitcoin transactions have reached a low not seen since July 2021, approximately 22 months ago. During that period, Bitcoin hit a bottom of around $29,000 before surging to its all-time high of around $69,000.
Bitcoin is currently trading at $26,891, experiencing a 0.2% increase in the past 24 hours.