Santiment: Bitcoin (BTC) Social Dominance Historically Suggests “A Good Bottom Signal.”
The crypto data platform suggests that Bitcoin is currently at a good bottom signal.
Santiment, a leading cryptocurrency data analytics platform that tracks the activities of the top 2,000 coins and tokens, said Bitcoin’s recent social dominance is a good sign that the asset class is approaching its bottom.
“BTC social dominance has spiked, which is historically a good bottom signal,” Santiment noted in a tweet today.
BTC’s dip saw a surge in negative comments about Bitcoin to a month high, Santiment added. At the moment, Bitcoin’s bleeding has stopped as investors have decided not to rapidly short the coin on exchanges.
📉 #Bitcoin's price has hit a 3-month low. According to our sentiment data, negative comments surged to month highs. #Shorting on exchanges has at least halted the bleeding. $BTC social dominance has also spiked, which is historically a good bottom signal. https://t.co/JhvxEQoSy9 pic.twitter.com/GRiRhukXxN
— Santiment (@santimentfeed) September 22, 2022
Bitcoin Fluctuates After Fed Raised Rates
It is noteworthy that the price of Bitcoin dropped to a three-month low yesterday after the Federal Reserve hiked interest rates to curtail the country’s inflation.
Jerome Powell, Chairman of the Fed, said the United States apex bank would continue to raise rates until inflation goes down to 2%. His comments resulted in the plunge of various assets, including Bitcoin. The world’s largest cryptocurrency dipped to a 24-hours low of $18,262 yesterday, according to data from Coingecko.