2023-11-1 22:00 |
Data shows the social media sentiment around Bitcoin has turned bearish, something that could be positive for the asset’s price.
Bitcoin Social Volume Of Bearish Terms Has Surged RecentlyAccording to data from the on-chain analytics firm Santiment, the crowd on social media has started to turn bearish around Bitcoin and cryptocurrency in general.
The relevant indicator here is the “social volume,” which keeps track of the total amount of unique posts/messages/threads on the major social media platforms that mention a given term or topic.
By “unique,” what’s meant here is that every post that mentions the term is only counted once, regardless of how many total mentions it may make. Because of this limitation, the social volume can provide a more accurate picture of how the trend on social media as a whole is looking like right now.
In the context of the current discussion, Santiment has used this metric to narrow down the posts talking about Bitcoin and cryptocurrency and has then further filtered them for terms related to sentiment.
Here is a chart that shows the trend in the social volume for bearish and bullish sentiments over the past week or so:
To pinpoint the two sentiments, the analytics firm has made use of terms such as “buy,” “bottom,” and “bullish” for the positive one and “sell,” “top,” and “bearish” for the negative one.
From the chart, it’s visible that the bearish social volume has observed a surge recently and has remained higher than the bullish one. This suggests that a bearish mentality is dominant on social media platforms right now.
Generally, the investors holding a negative view of the cryptocurrency isn’t a bad thing during rallies. An excess of hype is when tops are created in the market, while a fearful sentiment is when bottoms take shape.
From the chart, it’s visible that the recent instances of the bearish mentality being dominant right now all lead towards local bottoms for the asset, followed by a resurgence in market caps of not just Bitcoin but other coins in sector as well.
Naturally, a bearish sentiment doesn’t necessarily imply that a reversal has to happen for the cryptocurrency, but it certainly makes it more probable for one to take place.
Thus, as the traders on the social media platforms hold a bearish mentality, Bitcoin and the rest of the market may see some uplift soon.
BTC PriceSince Bitcoin’s impressive rally a few days back, the cryptocurrency has been unable to find a direction, as its price has been stale above the $34,000 level.
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