Overwhelming bullish sentiment once again proves costly

In line with information collected from 1000+ crypto social media channels, the typical crowd sentiment in direction of Bitcoin tailored from barely bullish to overwhelmingly bullish over the times main as much as Thursday’s dramatic pullback, mirroring the degrees beforehand noticed throughout its Could and August value tops, respectively. 

The newest findings by Santiment, revealed in Cointelegraph Consulting’s biweekly e-newsletter, indicated that with each short-term and long-term Bitcoin holders able of +15% and +63% revenue, the probability of profit-taking turned excessive. To make issues extra ominous, the funding fee on Bitcoin’s derivatives market was at a 3 month excessive on Bitmex, Kraken, and Binance. The funding fee is the value paid by one facet of perpetual contracts to the opposite, serving to to maintain the value of contracts buying and selling near the underlying reference value. A big funding fee is an indication that there’s a massive improve in lengthy predictions on the exchanges, which might speed up the frequency of mass-liquidations within the occasion of a value correction.