While the leading digital currency has dropped below $34,000, trader sentiment has gone down to a major low as well.
However, Santiment believes this could signify a big bounce in the future.
Paper hands are quitting the market
The Santiment team has tweeted that trader sentiment has dropped to six-week lows after the Bitcoin price went down to the $39,900 level and even lower by now.
The sort of capitulation signs that are currently visible on the crypto market are the weak hands dropping their BTC, which is needed for a "truly notable bounce" of the king crypto Bitcoin, the tweet says.
😱 With #Bitcoin now having retraced all the way down to $33.9k, trader sentiment has fallen to six week lows. We typically prefer to see capitulation signs like this, as weak hands leaving the space is generally what is needed for a truly notable bounce. https://t.co/AhXOBYcN9i pic.twitter.com/9HnY89RTuF— Santiment (@santimentfeed) May 8, 2022
At press time, Bitcoin is going for $33,375, showing an over 7% drop over the weekend.
Also over the weekend, CryptoQuant shared that last week short-term holders moved a total of 11,760 Bitcoins to various crypto exchanges to get rid of them. Chinese crypto journalist Colin Wu commented that this BTC had been held by those traders for less than three months before that selloff.
Bitcoin could crash to $10,000: Peter Schiff
Prominent BTC hater and gold bug Peter Schiff, CEO of Euro Pacific Capital, believes that should Bitcoin fall well under $30,000, a collapse to $10,000 and below is highly likely.
He already voiced this prediction in January, when the leading digital currency was also sitting at the $35,000 level.
Last week, Schiff wrote that a massive crypto selloff may begin after the historic rate hike initiated by the Federal Reserve.
He stated that many layoffs would follow and people would have to start selling their crypto to pay the bills that are rising quickly now.