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    Home » Crypto News » Despite BTC Losing $16K in Days, Crypto Community’s Bitcoin Positivity at 2021 Peak: Analysis

    Despite BTC Losing $16K in Days, Crypto Community’s Bitcoin Positivity at 2021 Peak: Analysis

    Author: Jordan Lyanchev

    Last Updated May 18, 2021 @ 11:24

    Crypto Twitter has shown the most significant levels of optimism on bitcoin after the massive price drop to a three-month low at $42,000.

    The cryptocurrency community has shown the highest optimism levels towards bitcoin in the past few days after the asset lost over $16,000 of value.

    At the same time, the popular fear and greed index has gone into an “extreme fear” territory.

    Crypto Investors Optimistic on Bitcoin?

    Ever since the primary cryptocurrency reached its latest all-time high in mid-April of $65,000, it has failed to sustain its 2020/2021 bull run. Just the opposite, the asset started to gradually retrace and was stuck beneath $60,000 for a while.

    The bears intensified their grip on BTC last week after Tesla and Elon Musk announced that users could no longer use bitcoin to purchase the company’s electric vehicles.

    BTC traded above $58,000, but it plummeted by $16,000 in a matter of days to a three-month low of $42,000. Such developments typically cause massive disruptions among investors. Some reports outlined that short-term holders have disposed of their coins, even selling at a loss.

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    However, the majority of the community has apparently regarded this correction as a rather favorable event. At least, this is what the analytics company Santiment said.

    “Bitcoin is currently getting the highest level of positive sentiment of the year after this dip, with many traders viewing low $40,000 BTC as an opportunity.”

    The metric relies on aggregated comments regarding bitcoin on Twitter and the general perception of commentators.

    Nevertheless, Santiment warned that the “best opportunity to buy the dip is when this optimism dies down from the crowd.”

    Bitcoin General Sentiment on Twitter. Source: Santiment
    Bitcoin General Sentiment on Twitter. Source: Santiment

    Fear and Greed Disagrees

    The Fear and Greed Index is another metric providing the investors’ general sentiment on the crypto space. It calculates various types of data, including social media interactions, volatility, volume, and surveys. Consequently, it determines whether the mood is positive or negative.

    The results range between 0 (extreme fear) and 100 (extreme greed). Its performance is usually highly correlated with bitcoin’s price movements.

    As such, it has gone deep into a state of “extreme fear” since last week. However, history shows that when the metric goes to the hilt in either direction, the price usually heads in the other shortly after.

    For instance, the last time it went to “extreme fear” in late April after a sizeable drop, bitcoin went on a tear and added roughly $10,000 in two days.

    Fear and Greed Index. Source: Alternative.me
    Fear and Greed Index. Source: Alternative.me
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    Tags: Bitcoin Bitcoin (BTC) Price
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    About The Author

    Jordan Lyanchev
    More posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

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