This Bitcoin Indicator Uses CNBC Tweets to Predict Crypto Price Rallies

With more Bitcoin ETF decisions on the horizon, cryptocurrency traders are adopting new methods to forecast upcoming rallies-including trader Jacob Canfield, who has developed a Bitcoin indicator that uses CNBC tweets to predict prices.

Canfield's Bitcoin indicator displays a Bitcoin price chart labeled with bullish and bearish CNBC tweets, according to Trading View, a financial visualization platform and social network for traders and investors.

In Canfield's Bitcoin indicator, a barrage of bullish CNBC tweets released during peak prices show 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."

If the indicator holds up, we should see #BTC price rally to $8500+.

Testing his theory, Canfield set out to unveil the probable correlation between market sentiment and media coverage of cryptocurrency prices.

"I'm sure that you've heard that CNBC is a good contraindicator, well I decided to put it to the test. 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."

CNBC's Fast Money frequently covers cryptocurrency price trends and news, often featuring market analysts and industry experts.

Canfield continues to update the price chart with new CNBC tweets as they are released.

"With every bearish. tweet, we typically see on average a 30 percent return. In the last week, we've seen three bearish. tweets from Twitter, which gives us a clear indication to go long here. Based on our 30 percent average returns, we should see a strong rally back to the $8,500 area, where we will then wait for more bullish. or bearish. tweets to let us know which way we are going."