Santiment Market Director: Five key panic words may indicate the bottoming out of the crypto market, with a high success rate for reverse operations

Odaily Planet Daily News Saniment’s Chief Marketing Officer Brian Quinlavin said in a blog post on October 2 that when five major ‘fear’ words are frequently used on social media, it can help traders determine whether the market is overly panicked and whether a breakthrough is possible. “When the market feels sluggish, people often start using specific vocabulary more frequently. These panic-inducing keywords, commonly referred to as ‘fear, uncertainty and doubt’ words, can actually foreshadow a turn towards the positive.” The first word is ‘crash’. When everyone is talking about a crash, it usually means a big dump in price and traders go into panic mode. Ironically, when the word ‘crash’ is mentioned the most on social media, it is usually when the price starts to recover. The same is true when the words ‘sell’ and ‘dead’ appear on social platforms. Quinlavin said that just like ‘crash’, traders start using the words ‘sell’ and ‘dead’ frequently, usually meaning that a recovery is imminent, creating opportunities for the ‘brave’. The fourth panic keyword is ‘crackdown’, which refers to regulatory and legal pressure that makes traders feel restricted and concerned about the potential outcomes of government actions or new or ongoing litigation. Quinlavin said, “These concerns may weigh on prices, but often bring good buying opportunities, especially when the panic seems overblown.” The fifth word is “liquidation”, which is a double-edged sword, depending on the market’s direction. Typically, investors on social media tend to use the word “liquidation” when celebrating the stop loss and losses of those in the short market. Quinlavin stated that the increase in short positions closing is “historically a great opportunity for new buyers to enter”. His conclusion is that it is often the right decision to take a ‘Reverse operation’ on social media emotions. (Cointelegraph)