Crypto Analyst Uses CNBC Tweets As Reverse Indicator Of Bitcoin Prices
This Analyst Uses CNBC Tweets As Reverse Indicator Of Bitcoin Prices
The biggest name in financial media, CNBC, have been infamous for their dreadful and reactionary predictions of the stock market, FOREX or the housing market. Now the story continues for cryptocurrencies.
To highlight this, trader Jacob Canfield, who has developed a Bitcoin indicator that uses CNBC tweets to predict prices. In Canfield’s Bitcoin indicator, a barrage of bullish CNBC tweets released during peak prices shows that the media outlet’s publicized sentiment may actually be contradictory to Bitcoin price action. At the top of the price chart, Canfield writes, “CNBC is the perfect contraindicator.”
📈Average return on bearish tweets = 30%+ Profit.
📊If the indicator holds up, we should see #BTC price rally to $8500+.
🙏Share away, but make sure you follow and tag me.
— Jacob Canfield (@JacobCanfield) August 21, 2018
In Canfield’s analysis, he broke down the outcomes of all the major predictions made by CNBC in 2018, noting that with every bearish tweet, Bitcoin typically sees on average a 30% return. his would likely further boost its market dominance, which currently stands at 56.2% within the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.
Jacob Canfield made sure to highlight that the counter-trade is still very viable. Though, he notes that he expects CNBC to begin hedging their calls, which may work to convolute future accuracy.
Testing his hypothesis, Canfield set out to reveal the seeming correspondence between market sentiment and media coverage of cryptocurrency prices. He says,
“Almost every single bullish tweet we’ve seen has been at the top of nearly every single rally, giving us a very strong sell signal. With every bearish tweet we see, it has been a clear indicator of a short reversal and end of a rally.”
Reputably, CNBC is one of the more vociferous mainstream outlets on Bitcoin, highlighting periodic coverage of price movements and related events.
It also has dedicated hosts, including investment manager Brian Kelly, hinting about when to buy.