“Inflation” and the crowd

With today’s CPI data release, here is a recap of what we’ve discovered:

Social analysis on crypto channels reveal an interesting pattern on these relevant topics.

These are very specific spikes we’re seeing, and optimal trading needs to be assessed accordingly.

Super high social volumes are often a foreshadow of a price reversal.

Note that these spikes don’t necessarily always imply that there is a definitive top or bottom forming.

But it does mean that each time the crypto crowd rationalizes an event, it’s as if they are proclaiming as a group ‘Ok, now we know why it’s happening”. And then the opposite price reaction generally occurs after this crowd consensus.

If we look at “Inflation” and “CPI” mentions, we can see that the market just turns around when these topics spike:

It doesn’t really matter how bullish or bearish the price structure is currently. Say, it looked very bad around 17th of March, prices still went the opposite direction of crowd expectation. The thing is there has to be a spike in social volume for “Inflation” or “cpi”. Both can coincide as ‘inflation’ and ‘cpi’ are spiking on the same day.

Just another useful observation for your education. More updates coming soon!