7-day cumulative sentiment at -330, with weakness dominating for the seventh consecutive week.
Weak Insights Surge on the 9th… Market Sentiment Shows No Signs of Recovery
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According to on-chain sentiment data from Arkham Intelligence, as of today, the red line representing the 7-day Cumulative Sentiment has fallen to -330.
Weak Insights Overwhelm for a Week
Analysis of the bar graph showing daily sentiment shows that the red bars indicating bearish insights have been overwhelming the green bars indicating bullish insights for the entire week from the 3rd to today.
In particular, the surge in bearish sentiment on the 5th and today further dragged down the cumulative sentiment indicator. On the 5th, the daily bearish sentiment reached nearly -200, and today, a significant amount of negative sentiment was recorded.
7-day cumulative sentiment -330, extreme pessimism
Arkham Intelligence's sentiment indicator, with a zero base, indicates positive sentiment, while a negative value indicates negative sentiment. The current reading of -330 clearly demonstrates extreme pessimism among market participants.
The 7-day cumulative sentiment line has been moving sideways, consistently below -300 since March, suggesting that market sentiment will not improve easily in the short term.
The green bar is barely visible
It's noteworthy that green bars indicating bullish insights are rarely seen during the observation period. While small green bars are observed on some dates, their magnitude is significantly smaller than the red bearish bars.
This suggests that optimism is hard to find among investors and experts analyzing on-chain data.
Market Bottom Signal? A Contrarian Perspective
Some argue that extreme fear may actually signal a market bottom. This is because, in the past, there have been instances in the virtual asset market where extremely negative sentiment created opportunities to buy at the bottom.
However, as there are currently no clear signs of a sentiment recovery, investors are urged to take a cautious approach.
Joohoon Choi joohoon@blockstreet.co.kr
