While still optimistic long-term, Santiment notes the Bitcoin ETF approvals likely marked a local crypto top. The anticipation and FOMO surrounding these events arguably peaked prices, with the foregone conclusion already priced in.
After $BTC dropped 16.9% from its peak following the approvals, Santiment says to watch if ETF narrative turns negative. Specifically, they advise monitoring for FUD-filled associations like “scam,” “ripoff,” or “disaster” as novice traders sell in panic.
Source: Santiment – Start using it today
Signs of Capitulation Sparking Bounce
If bearish ETF sentiment emerges after previously pumping prices, it could signal capitulation nears. As Santiment explains, the FUD and panic selling that washes out weak hands enables patient accumulators to spark a rebound at lower levels.
In other words, the same factor that initially pumped prices (ETF optimism) flipping bearish could ignite the next bounce if it achieves peak panic. These opportunistic conditions tend to mark reversal points.
So traders should closely monitor for extreme ETF fear signaling the bottom may be forming, according to this top on-chain analyst.
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