Tag: santiment

Crowd Buys Dip, Santiment Warns of ‘More Pain’ Pre-FOMC

The post Crowd Buys Dip, Santiment Warns of ‘More Pain’ Pre-FOMC appeared com. Santiment: High crowd interest in buying the dip is a classic contrarian bearish signal. A $512M liquidation cascade, mostly longs, hit the market ahead of today’s FOMC decision. CryptoQuant: Long-term Bitcoin holders sold 325, 600 BTC in the past 30 days. Santiment data analysis reveals the midterm crypto market pain may not be over. A slight market drop on Tuesday triggered over $512 million in liquidations from leveraged traders. In response, Santiment’s data now shows a high level of interest among the crowd to “buy the dip.” Santiment warns that more pain is likely before an ultimate rebound. Historically, a high volume of dip-buying calls is a contrarian indicator. This pattern often precedes a mild short-term retrace, which is then followed by further downside pressure. Related: FOMC Day: Bitcoin Stays Strong as Altcoin Catalysts Build with these 4 Altcoins “Once their (crowd) optimism (FOMO) turns to fear (FUD), this is when we see the biggest rallies,” Santiment noted. Why a Midterm Crypto Retrace is Likely Amid Robust Fundamentals Market Weak Ahead of FOMC The crypto market is showing midterm bearish sentiment just hours before today’s October 29 Fed rate decision. This market uncertainty persists despite Polymarket and Kalshi showing odds of a 25 bps rate cut at over 97%. According to Tom Lee, the Fed’s QT is likely to end on Wednesday, which is ultimately good for equities and the crypto market. Meanwhile, the macroeconomic uncertainty caused by ongoing tariff trade negotiations amid geopolitical tensions between Russia and Ukraine has caused concern of further downside risk. Sell-the-News Impact After Potential Fed Rate Cut and Listing of Spot Alts ETF The crypto market is likely to experience mid-term bearish sentiment due to the classic selling on the news impact. Notably, the crypto market’s bullish momentum may momentarily fade after the Fed initiates.