Data shows the hype around Bitcoin has stayed low on social media recently despite the asset’s latest record. Here’s what this could mean for BTC.
The Bitcoin sentiment on social media is still only mildly positive
Santiment’s new post about X discusses recent trends in Positive Sentiment vs. Negative Sentiment for Bitcoin. This metric is named after the way it compares the positive sentiment to the negative sentiment on social media platforms.
The indicator sources its data from the posts/threads/messages that are appearing on the major social media platforms (X, Reddit, Telegram, and 4Chan). The metric uses a Santiment-developed machine-learning algorithm to distinguish between positive and negatively rated comments.
Related Reading: Bitcoin whales not done buying: Accumulation strong even above $90,000.
If the indicator value is greater than 0, it means that the positive posts about BTC outnumber the negative ones. A negative value indicates that the bearish sentiment on social media is the dominant one.
The chart below shows the Bitcoin Positive sentiment vs. The Negative Sentiment ratio over the last month or so is:
Santiment on X: The value of metric seems to have increased in recent times| Source: Santiment on X
As displayed in the above graph, the indicator has seen a jump recently as the cryptocurrency’s price has reached a new all-time high (ATH) beyond the $94,000 level. This would indicate an improvement in the social media sentiment.
As Santiment has highlighted in the chart, however, the current level of the metric is still only inside the historical ‘neutral’ zone. There is a certain amount of excitement among traders in this zone but also some skepticism.
In the past, Bitcoin, and other cryptocurrencies in general, tended to move against what people expected. This means excessive FUD, which is a low-value of the metric, has led BTC to a bottom, while euphoria has caused BTC to reach a top.
Trump’s election as the 47th President was the catalyst for a spike in sentiment towards the asset. BTC’s local top coincided with this spike and it was only once the sentiment cooled back down to neutral that the price could continue its upwards climb.
Quant explains why Bitcoin still has room to rise
During the latest leg up, traders have so far not shown hype of anywhere near the same degree, so it’s possible that the current Bitcoin rally could still have room to grow before a top.
“As long as there is retail trader disbelief, whales can continue pumping cryptocurrencies with little resistance,”The analytics firm notes.
BTC Price
Bitcoin was trading around $93,600 at the time this article was written, an increase of more than 6% in the past week.
Source: BTCUSDT on TradingView Featured image from Dall-E, Santiment.net, chart from TradingView.com| Source: BTCUSDT on TradingView Featured image from Dall-E, Santiment.net, chart from TradingView.com
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