🚨The rule is simple: accumulate Bitcoin when Twitter and news are bearish.
This is what our sentiment analysis indicator, which uses three text sentiment recognition algorithms, demonstrates. Statistically, trading based on news is not always a good idea, as news does not keep up with the real price volatility, resulting in delayed trades. However, by aggregating thousands of tweets from different countries and news page texts, it is possible to measure market sentiment with excellence.
Historically, when sentiment becomes very negative on a 7-day average, Bitcoin tends to form local bottoms and subsequently experiences appreciation, although this heavily depends on the context.
Some important considerations are that long periods of declines can occur with a negative indicator. In other words, it is not a price trend metric but rather sentiment at a given moment. On the 7-day average, the current sentiment has turned bullish on social media, but the latest daily value is negative, showing that traders and analysts are oscillating between positive and negative sentiments regarding cryptocurrencies.
The point of concern is if Bitcoin breaks key support levels like $64.6k (Short Term Holder Realized Price), which could trigger a wave of negativity in the market for a few days.
