Santiment Evaluates the Latest Drop: “FUD Comes into Action in Bitcoin!”

Bitcoincontinues to fall due to the “sell the news” event in the face of the expectation of a price increase after the spot ETF approval.

at this point BTC While it first fell below the important psychological level of $ 40,000, this decline continued until $ 39,000.

Evaluating the decline in BTC centimeterHe pointed out that Bitcoin fell to these price levels for the first time since December 2023 and described this drop as a bloodbath.

Also compared to ETF approval week BTC and Ethereum (ETH) Stating that there is a decrease in the conversations, Santiment said that FUD has started to rise and argued that this could be an upward signal.

“Bitcoin fell below $40,000 for the first time since December. Monday turned into a bloodbath for much of the cryptocurrency industry.

Specifically, compared to the previous ETF approval week, conversations for BTC were down 35% and conversations for ETH were down 21%.

This indicates that FUD is starting to rise, and when FUD reaches its peak, it starts to kick in to create nice price bounce opportunities.”

Given that historically there has been a positive correlation between the level of FUD and the likelihood of a price bounce, Santiment analysts point out that as FUD establishes, the likelihood of a price bounce increases.

📉 #Bitcoin briefly fell below $40K for the first time since December 4th. Monday has been a bloodbath for most of the #crypto sector Notably, there is 35% less discussion toward $BTC and 21% less toward $ETH compared to the previous #ETF approval week. #FUD work

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— Santiment (@santimentfeed) January 22, 2024

*This is not investment advice.