We track millions of social media posts and use machine learning to determine sentiment of cryptocurrencies. Bitcoin sentiment has been quite useful recently for Bitcoin price direction.
We have noticed in the past that after sentiment and optimism for Bitcoin reach a certain level, the optimism cannot sustain itself for long and the sentiment and price soon fall afterwards. This has happened in several cases in the past, see the picture below.
It has also happened in the latest instance when the sentiment went over the warning line on 24th March continued for a while but subsequently fell, with price also following. It is down around 12% from price levels of 24th March. For the statistics of previous cases see the table below and the chart.
As such, sentiment can be a really useful indicator for when to reduce positions in Bitcoin and other cryptocurrencies. See also our previous posts on these sentiment signals from the past:
If you want to use data like this as an additional source of information to improve your cryptocurrency trading, you can start using BittsAnalytics platform by becoming our user: https://www.bittsanalytics.com/subscribe.php