Bitcoin FUD and negative social sentiment typically precede a bounce

On-chain analytics provider Santiment asserts that Bitcoin and crypto assets tend to bounce when social sentiment indicates there is a lot of fear, uncertainty and doubt, which suggests that now is a buying opportunity.

According to its Bitcoin weighted social sentiment against price chart, this is exactly what is currently going on.

Since its weekend lows, Bitcoin prices have recovered around 2.4% to current levels.

Following the early September slump, when there was also a lot of negative social sentiment, Bitcoin recovered around 12% to top out over $11k, and the same could happen again.

This latest plunge a couple of days ago has resulted in a much smaller drop off for Bitcoin prices with just 7.5% lost to its low of $10,300.

Santiment added that Bitcoin's weighted social sentiment on Twitter continues to hover around near two year lows indicating that there are a lot of doubters in the price level, keeping support at the mid-$10k zone.

The Bitcoin Fear and Freed Index has now dropped into the fear zone at 43 which confirms the findings.

Trader and Blockroots co-founder, Cantering Clark, stated that the current situation could be shaping up as a bear trap and Bitcoin could be seeing relief in the near future;.

Bitcoin investor Lark Davis says that regardless of what crypto markets are doing, September is usually a bad month for stock markets and Bitcoin's correlation could lead to some rocky weeks ahead;.

At the time of writing, Bitcoin was trading at $10,500, up 0.5% on the day but down 2.7% on the week.