Sentiment affecting BTC price: correlation or causation?
Looking at crowd sentiment we are, perhaps, in a very good position.
Take Weighted Social Sentiment (Total), apply smoothing '3' and you'll see this:
A possibly developing pattern has been seen in the past:
What's inside the box?
- 1. Sentiment goes deep down (dip 1), typically to –0.9... –1.0
- 2. Sentiment goes up and pushes price a little bit
- 3. Sentiment dives again (dip 2), taking price to a new low
- 4. Up&down move repeats again (to dip 3). This is the moment of reversal.
Now we might make a new low or not, but this is the pattern we'll be waiting for. A very good pattern.
Ideally we'd say we need one more drop down, because it will really remove all buying power from speculators (from the crowd). Professionals will still keep buying. But crowd will turn
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