How Crowd Mood Dictated Bitcoin's and Ethereum's Mid-Week Dip & Rebound
Very often, we will see the mainstream crowd play a major role in small to mid-sized price fluctuations. And by major role, we mean wherever the mass majority thinks Bitcoin or Ethereum is heading next, the opposite outcome comes to fruition more often than not.
Let's look at the BitMEX perpectual contract funding rates during the first week of April. This metric helps gauge where leveraged traders are placing their bets.
When bars are high, greed is taking place (a good time to sell). When low, shorts are paying long, indicating fear is kicking in (a good time to buy).
The two largest bars of the week were right near local tops, and both led to major price downswings.
The same outcome is true. ETH dropped both times this metric rose higher.
And with social mentions, we recently dropped to "fear" range when we dropped to $56k.
Not surprisingly, we're now back to $58.4k.