Crypto behavioral resource Santiment highlights the optimal time frames to buy, hold, And Sell Bitcoin Amid Prolonged Decline.
Bitcoin news today: To clarify, this decline has resulted in losses for Bitcoin in five of the last six trading days. The leading crypto asset has fallen 13% from its all-time high of $108,300 and is now trading at around $94,000. Notably, the collapse triggered a similar downturn for the broader market.
Amid this volatility, Santiment Bring light into the darkness about the conditions that drive these market movements. It has been found that investor sentiment, which characterizes the behavior of small traders and large wallets, often determines Bitcoin’s performance.
Retail investors, who make up the majority, tend to buy when prices peak and sell when prices fall. This pattern plays into the hands of larger players like whales and sharks, who accumulate assets in panic selling.
A classic example is the consequences of FTX implosion Late 2022, sparking widespread fears of Bitcoin’s demise. The retail panic reached unprecedented levels and led to a surge in negative mentions of Bitcoin on social platforms like Reddit and Telegram. However, this period of great fear was preceded by a major rally.
Santiment suggests when to buy, hold and sell
Citing these responses to sentiment trends, Santiment identified two key groups driving market moves. These groups are Whales and sharks and retailers. Investors looking to invest in Bitcoin should consider the behavior of these groups of holders.
Whales and sharks are wallets with 10 or more BTC and represent the most influential stakeholders. These entities tend to…
