Is this Bottom? Maksim Balashevich, Santiment CEO, chimes in

blockchain-analytics

#1

The Bad News and the Bad News

The most recent crypto market ‘bottom’ corresponded to the highest (on record) ‘negative crowd sentiment’.

The BTC forecast was grim; crypto pundits said it was a matter of time before it hits the $2000s.

EOS and ETH were also both labeled deeply troubled.

EOS’ Dan Larimer was recently rumored to be leaving the project (as he’s done in the past with BitShares and Steem). On the other hand, several highly prominent Ethereum projects announced layoffs - Consensys and Status recently fired 13% and 25% of their workforce, respectively.

Quite a few US-based ICOs were targeted by the SEC, and there was - once again - plenty of gossip about ICOs running out of money.

Ok, enough with the downer talk. All of these represent ‘blood on the streets’, and the market reaction reveals what smart money’s doing about it - buying into widespread fears.

What we all really want to know is - what comes next?

Looking Ahead

This is not investment advice, but I believe ETH to be undervalued as long as it stays below $400. As of late, BTC has also dipped its toes in the ‘undervalued’ waters.

The market can still go further down - and likely will. However, the risks are moving to the upside now.

Lastly, here’s a great example of how quickly the mood of the crowd can switch. These are the combined social mentions of ‘short’ and ‘shorts’ on crypto-related social media. (Note: get full historical data, as seen here, by simply staking 1000 SANs)