Bitcoin has observed a retrace from its new all-time high after users on the major social media platforms displayed overexcitement. Bitcoin FOMO On Social Media Spiked During Recent Rally In a new post on X, the analytics firm Santiment has talked about how social media reacted to the recent Bitcoin rally to the new all-time high. Whenever volatility emerges in the market, users on these platforms start sharing about which levels they think the price would visit next. This latest one was naturally no exception. To gauge how many users called for which price levels, the analytics firm has made use of the “Social Volume” indicator. This metric keeps track of the total number of posts/threads/messages on the major social media platforms that are making at least one mention of a given term or topic. Related Reading: XRP Whale Binance Deposits Skyrocket: Key Holders Preparing For Profit-Taking? The reason that the indicator doesn’t simply count up the mentions themselves is so that a few outlier posts containing thousands of mentions don’t skew the data by themselves. In order to narrow the data down to posts related to Bitcoin price calls, Santiment has entered certain price levels alongside BTC-related terms into the Social Volume. The analytics firm has divided the price targets into three groups: levels above the current one, levels below it, and levels around it. Below is a chart showing the trend in the Bitcoin Social Volume for these over the past month and a half: As is visible in the graph, the combined Bitcoin Social Volume for the prices between $110,000 and $119,000 witnessed a large spike alongside the price rally, suggesting that the social media users were optimistic about the cryptocurrency continuing its bullish momentum and exploring the higher levels next. The bets of these users have failed so far, though, as the asset has seen a retrace since their mentions have appeared. From the chart, it’s apparent that this is actually a trend that BTC has shown in the past as well. “Prices historically move the opposite direction of the crowd’s expectation, particularly in the short-term,” notes Santiment. “Being a contrarian continues to be a profitable way to swing trade, and an easy way to do so is to look at mentions of lower prices, current prices, and higher prices.” Just like how market hype leads to tops for Bitcoin, pessimism can result in bottoms. The price recovery run during the past week kicked off after social media users started expecting a bearish outcome. Related Reading: Bitcoin Struggles For Direction Post-Trump Disappointment – What Next? Thus, the Social Volume of these terms could be to keep an eye on in the coming days, as another spike in posts mentioning the lower price targets could end up being a positive sign for the rally. BTC Price At the time of writing, Bitcoin is floating around $104,500, up almost 9% in the last seven days. Featured image from Dall-E, Santiment.net, chart from TradingView.com
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. Bitcoin Sentiment On Social Media Is Still Just Mildly Positive In a new post on X, the analytics firm Santiment has discussed about the recent trend in the Positive Sentiment […]
Bitcoin, the world’s largest digital asset, recorded significant market gains in the past week to resume an uptrend that began in early October. Data from CoinMarketCap shows that Bitcoin rose by 10.58% in the past week as pro-crypto candidate Donald Trump emerged as US President-elect on November 5, followed by a 25 bps rate cut by the US Federal Reserve. With the crypto market leader recording new all-time highs each day, analyst Ali Martinez has dropped a new price target that hinges on a certain condition. Related Reading: Bitcoin Sentiment Enters Danger Zone: Investors Now Extremely Greedy Bitcoin Must Stay Above $71,480 – Here’s Why Amidst the current Bitcoin price rally, Ali Martinez predicts the digital asset could reach a local price peak of $85,360. However, this price action can only occur if BTC’s value does not decline below $71,480 based on data from the MVRV Deviation Pricing Bands, a trading tool used to identify extreme bullish and bearish market conditions based on the Market Value to Realized Value (MVRV). Martinez’s latest insight on Bitcoin’s trajectory follows a previous prediction in which the analyst forecasted the premier cryptocurrency to retrace to around $71,500 after hitting the $78,000 price mark. With Bitcoin within range of this price target following its recent tourney across $77,000, it is imperative that the market bulls prevent any potential retracement below $71,480, which may result in a further decline to $66,000 at which lies its next major resistance. Alternatively, Bitcoin is also well poised to push beyond $78,000, reaching Martinez’s target of $85,360 without experiencing any projected price pullback as market sentiments remain highly bullish due to multiple factors. Aside from Donald Trump’s resounding electoral victory which signals an incoming crypto-friendly approach by the US Government, high inflows into the Bitcoin Spot ETFs over the past weeks have also boosted investors’ confidence in Bitcoin’s continuous profitability. Nevertheless, all investors are admonished to remain vigilant as the crypto market is subject to high levels of volatility and sudden price movements. Related Reading: $13 Million Bitcoin? Sounds ‘Bearish’: Expert Hints At Even Greater Heights Ahead BTC Social Narrative Backs Potential Retrace In other news, data from analytics firm Santiment shows that Bitcoin’s rise above $77,000 has induced a change in the social narrative as the general crypto community is anticipating a continuous rise to $80,000. According to Santiment, whenever crypto enthusiasts have been overly eager about $80,000 in the past month, Bitcoin has experienced a price retrace. Therefore, there is a need to reduce growing notions around FOMO in order to allow Bitcoin to maintain its current price rally. At the time of writing, Bitcoin trades at $76,395 reflecting a gain of 0.49% in the past 24 hours. Featured image from Forbes, chart from Tradingview
Data shows social media users had become overly excited about Bitcoin after the recent rally, which may be why BTC has retraced. Bitcoin Topped Out As Hype Around The Coin Shot Up According to data from the analytics firm Santiment, crowd sentiment around BTC has noted a sharp surge recently. The indicator of relevance here is the “Positive vs. Negative Sentiment Ratio,” which keeps track of the difference between the positive and negative comments related to Bitcoin that are being made on social media platforms. Related Reading: Bitcoin Breaks $66,000, But Analyst Warns Against Fresh Longs—Here’s Why The indicator separates posts related to negative and positive sentiments by putting them through a machine-learning model devised by the analytics firm. When the value of this metric is greater than 0, it means the social media users are participating in more positive talks than negative ones. On the other hand, it being under this threshold suggests the dominance of bearish sentiment on these platforms. Now, here is a chart that shows what the Positive vs. Negative Sentiment Ratio’s recent trajectory has been like: As displayed in the above graph, the Bitcoin Positive vs. Negative Sentiment Ratio had observed a significant surge during the cryptocurrency’s earlier run toward the $66,000 level. Yesterday, when Santiment shared the post, social media users made 1.8 bullish posts for every 1 bearish post. Thus, the traders had become quite optimistic after the price surge. This, however, may not have been an ideal development for the coin. Historically, BTC has tended to move in the direction opposite to what the crowd is expecting, with the probability of a contrary move only rising the more lopsided the sentiment gets. Today, Bitcoin has retraced back under the $64,000 level, a possible indication that the earlier hype that the social media users had shown has backfired, just like it has done many times. It’s also not just the social media users that have been excited recently, as the Fear & Greed Index, an indicator created by Alternative that considers more factors than just social media, has also been showing a rising optimism in the sector. The Fear & Greed Index currently sits at a value of 61, which suggests that the investors are leaning towards being bullish around Bitcoin and the cryptocurrency sector in general. Related Reading: Shiba Inu Rallies 34%, But Will FOMO End The Rally? The sentiment-related indicators could follow in the coming days, as they may dictate whether BTC can regain its bullish momentum. The crowd calming down would be a sign in the right direction if history is to go by. BTC Price After the latest plunge, Bitcoin has returned to the $63,400 level. Featured image from Dall-E, Alternative.me, Santiment.net, chart from TradingView.com
Data shows the social media users have yet to show excessive hype around the latest Bitcoin rally, a sign that could be positive for its sustainability. Bitcoin Sentiment Ratio Has Spiked, But Value Still Not Too High According to data from the analytics firm Santiment, Bitcoin Fear Of Missing Out (FOMO) has remained low through the latest rally. The indicator of relevance here is the “Positive Sentiment vs. Negative Sentiment Ratio,” which, as its name suggests, measures the ratio between the positive and negative comments around BTC being made on the major social media platforms. Related Reading: These Altcoins Are Seeing High Whale Interest After Fed Rate Cut To separate the posts/threads/messages on these platforms between positive and negative, Santiment’s indicator uses a machine-learning model. When the value of this metric is greater than 1, it means the social media users are making more posts expressing a positive sentiment than a negative one. On the other hand, it being under 1 suggests bearish messages are the norm on these platforms. Now, here is a chart that shows the trend in the Bitcoin Positive Sentiment vs. Negative Sentiment Ratio over the last few months: As the above graph shows, this Bitcoin indicator has observed an uplift alongside the latest recovery run in the cryptocurrency’s price. This rally has come as the US Federal Reserve has announced an interest rate cut. The indicator is currently decently above the neutral mark, meaning that positive posts notably outweigh the negative ones. Historically, the asset has tended to move in a direction opposite to what the crowd is expecting, with the probability of the contrary move going up the stronger this expectation becomes. A very bullish market can be a warning sign for the BTC price. Despite the recent surge in sentiment, FOMO is not yet at a level where it would be a problem. The chart shows that the previous spikes in the indicator that occurred around the tops for Bitcoin were of a significantly large scale. The last few months have also seen the indicator generally maintain a positive level, so the metric’s current value isn’t even that out of place when compared to the norm. “Markets can roll until we see a bullish sentiment spike similar to what we saw during the April 19th and May 21st tops,” notes the analytics firm. If FOMO does end up spiking to high levels in the coming days, BTC could encounter another top. Related Reading: Crypto Shorts Suffer $147 Million Squeeze As Bitcoin Returns Above $63,000 When that happens, another foray into the negative sentiment zone could be to wait since, as highlighted in the graph, the last two such instances proved to be profitable buying points into Bitcoin. BTC Price Bitcoin has enjoyed a surge of almost 6% over the past week, bringing its price back to the $63,200 mark. Featured image from Dall-E, Santiment.net, chart from TradingView.com
Willy Woo, an on-chain analyst, believes the Bitcoin upswing is far from over. Citing the development in the Bitcoin Macro Oscillator and the possibility of traditional finance jumping on the bandwagon (FOMO), the odds of BTC rallying in at least two strong legs up in the coming session could not be discounted. On-Chain Data Signals More Upside For Bitcoin In a post on X, Woo remains confident about what lies ahead for the world’s most valuable cryptocurrency. Based on on-chain development, there are indicators that the coin may firmly push higher, breaking above the current lull. Related Reading: AI Tokens Fetch.AI, AGIX, OCEAN Talk Merger, Surge Double Digits Bitcoin remains mostly range-bound when writing, trading within a tight zone capped by $73,800 on the upper end and $69,000 as immediate support. Even with analysts being confident of what lies ahead, the coin has failed to overcome strong selling momentum from sellers to breach all-time highs in a buy-trend continuation. From how the coin is set up, the current sideways movement may be accumulation or distribution, depending on the breakout direction. For instance, any upswing above $72,400 might spur demand, lifting the coin towards $73,800. Conversely, losses below $69,000 and the middle BB might see BTC slump to March 5 lows or even lower. Will TradFi FOMO And Short Squeeze Lift BTC? Even with the slowdown in upside momentum, Woo says there is strong potential for “another solid leg up.” The analyst also added that there could be two surges if TradFi investors “FOMO” into Bitcoin. In the 2017 bull run, the rally to $20,000 was primarily due to retailers jumping in and FOMOing on the coin. With spot Bitcoin exchange-traded funds (ETFs) available in the United States, speculation is that more institutions and high-net-worth individuals are buying the coin. If BTC rips higher, breaking $74,000, more inflow will likely be into the multiple spot Bitcoin ETFs, fueling demand. Related Reading: Litecoin ETF Rumors Fuel 10% Surge As Institutions Hint At Interest This bullish outlook comes when other analysts expect Bitcoin to surge in the sessions ahead. In a post on X, one analyst says the incoming short squeeze will likely propel the coin above March highs. Whenever a short squeeze happens, prices rise, forcing sellers to buy back at higher prices, accelerating the uptrend. The assessment is behind a record-breaking gap between institutional investors betting on price increases and hedge funds selling the coin. Feature image from DALLE, chart from TradingView