The recent market downturn has led to a significant FUD in the Bitcoin ($BTC) sentiment. As per the data from Santiment, the crowd sentiment of Bitcoin has dropped down to the most negative mark of the entire year of 2024. This substantial dip has reportedly paved the way for a massive fear, uncertainty, and doubt. The crypto analytics firm took to social media to discuss the current Bitcoin sentiment and its potential impact.
Bitcoin Market Sees the Deepest Sentiment Dip of 2024 Led by an Enormous Decline
Santiment pointed out that reaching the deepest negative point in the case of market sentiment denotes a huge FUD. It added that such a high level of fear, uncertainty, and doubt, often serves as a positive sign for divergent investors. These investors reportedly recognize the market’s inclination opposite to the retail expectations.
The data shows that, on the 4th of July this year, Bitcoin witnessed more negative comments in comparison with the positive comments. As a result of this, the price saw a +17.2% rise over the next eleven days. The respective pattern repeated in August as Bitcoin saw a prevailing negative sentiment on the 4th of the month. Subsequently, the next four days beheld a +14.3% price boost in its price. Fast forwarding to present, Bitcoin is seeing more negative comments, raising the chances for another price action.
Additionally, the data shows the impact of the price data on the crowd sentiment surrounding the top crypto token at the chief psychological levels. In November’s latter part, fear of a dip to $90K was dominating the market sentiment. This resulted in a surge in the crypto markets. Following that, in early December, there was excitement about Bitcoin’s rise above the $100K mark. Nevertheless, the markets saw an immediate fallback. Moreover, in mid-December, the crowd anticipated the Bitcoin market’s spike to $110K. However, the prices declined following that sentiment.
The Former Price Surges after Negative Sentiments Highlight the Opportunity for the Divergent Investors
Keeping this in view, the current sentiment dip can be beneficial for the divergent investors to capitalize on the potential upcoming price action. The above-mentioned market patterns revealed by Santiment underscore the noteworthy influence of the sentiment on the overall market movements. Therefore, the investors need to be careful and vigilant to make divergent strategies for likely future gains.
