Bearish sentiment grows for bitcoin, ether and XRP, rebound chance seen - 디지털투데이
Investor sentiment toward bitcoin, ether and XRP has turned broadly bearish on social media, with bearish comments outnumbering bullish ones for all three major cryptocurrencies.
On Nov. 11, blockchain media outlet CoinPost reported that crypto analytics firm Santiment found bearish views outnumbered bullish ones in bitcoin, ether and XRP across social media platforms. The ratio of bullish to bearish comments was 0.82 for bitcoin, 0.88 for ether and 0.49 for XRP, indicating the weakest sentiment for XRP where bearish comments were about twice bullish ones.
Market pullback
The weakening sentiment coincided with a market decline after the release of October U.S. inflation data on Nov. 10, which came in above market expectations. This sent bitcoin below $73,000 at one point and triggered selling across major cryptocurrencies as expectations grew for an additional rate hike at the December Federal Open Market Committee meeting.
Sentiment shift
Just over a week earlier on Nov. 3, the sentiment picture was different, with ratios of 0.69 for bitcoin, 1.14 for ether and 0.61 for XRP. Ether had more bullish views at that time but swung to a bearish majority within a week, while pessimism also strengthened for XRP. Bitcoin recovered somewhat but still saw more bearish than bullish views.
Big rallies often begin when investors cut losses out of fear and even question the possibility of a rebound, rather than when they broadly expect prices to rise.
Rebound potential
Despite the widespread pessimism, Santiment suggested such bearish sentiment could trigger a rebound, noting that strong technical rebounds often occur when bearish views continue to outnumber bullish ones among top market-cap assets. However, the firm also emphasized that extreme fear needs to be accompanied by price stability to become a more meaningful rebound signal. The key going forward is whether prices can stop falling and find stability as pessimism spreads.
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