Market sentiment is not as strong as on-chain activity

Market sentiment is the general interest in the underlying assets and the behavior of traders in the derivatives markets. Thanks to sentiment analysis, one can determine the position of long-term investors, who always sell during the uptrend of short-term speculators and buy dips with a statistically positive expectation. On the contrary, the psychology of the masses is irrational, as they often buy with bullish candlesticks for fear of losing and dumping the downtrend.

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