According to Cointelegraph, crypto research firm Santiment said there are five key words that may indicate the bottom of the crypto market. Recently, affected by geopolitical tensions in the Middle East, the price of Bitcoin (BTC) fell by 3% in 24 hours.
Brian Quinlavin, director of marketing at Santiment, noted in an Oct. 2 blog post that when five key “fear” words appear frequently on social media, it could be a sign that the market is over-panic and could instead signal an impending rebound.
The first word is "crash". When everyone is talking about "crash", it usually means that the price has plummeted and traders are panicking. Ironically, when the word "crash" is mentioned the most on social media, it is usually when the price begins to reverse.
Likewise, when the words “sell” and “dead” appear on social platforms, it signals an impending market recovery, creating “opportunities for the brave.”
The fourth fear keyword is "crackdown," which refers to regulatory and legal pressures that can make traders feel constrained and fearful. But this fear often brings good buying opportunities, especially when the panic appears excessive.
The fifth fear word is “liquidation,” which depends on the market direction. Often, investors on social media use this word when celebrating that short sellers of the market are forced to close their positions. Quinlavin said high levels of short liquidation “historically are good opportunities for new buyers to enter the market.”
Taking a “contrarian approach” to social media sentiment “is often the right decision,” Quinlavin concluded.