Santiment Introduces New Bitcoin Trading Method Based on Retail Sentiment

Coin WorldSaturday, Jun 14, 2025 4:11 am ET
1min read

Santiment, a leading crypto analytics firm, has introduced a new method for Bitcoin trading that diverges from conventional techniques. The firm's latest analysis indicates that retail sentiment, rather than traditional support and resistance levels, may offer one of the most dependable swing trading signals in the cryptocurrency market. This development marks a significant shift in how market participants might approach Bitcoin trading.

Santiment's analysis involved monitoring the volume of Bitcoin price predictions shared across various social platforms, including X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster. The data was segmented into two sentiment ranges: blue, representing mentions predicting Bitcoin between $30,000 and $70,000, and red, indicating mentions predicting Bitcoin between $120,000 and $160,000. Despite Bitcoin's price remaining within a specific range over the past three months, retail discussions frequently oscillated between extreme bearish and bullish sentiments.

According to Santiment's data, these sentiment swings present a reliable counter-trading opportunity. When retail sentiment leans heavily toward either extreme, markets often move in the opposite direction. A notable example occurred between June 4 and June 6, when Bitcoin dropped to $101,000. As retail panic surged and traders began forecasting further declines, whales started accumulating. This shift triggered a swift recovery, demonstrating the effectiveness of tracking sentiment extremes.

Santiment noted that at the moment, retail sentiment appears mixed, with traders waiting for a significant move to enter the market. This presents a contrarian opportunity for professionals observing from the sidelines. The firm emphasizes that counter-trading the crowd remains one of the most consistent strategies, not by relying solely on price charts, but by observing the emotional tides of retail traders in real time.

This approach underscores the importance of understanding market psychology and sentiment in cryptocurrency trading. By leveraging social media data, traders can gain insights into the collective mood of the market, which can be used to make more informed trading decisions. This method challenges the traditional reliance on technical analysis and support/resistance levels, offering a fresh perspective on how to navigate the volatile cryptocurrency market.

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