Data shows that the buzz around bitcoin has remained low on social media recently despite the asset's latest record high. Here's what this could mean for btc.
bitcoin Social Media Sentiment Remains Mildly Positive
in a new<a target="_blank" href="https://x.com/santimentfeed/status/1858980865163796813″ target=”_blank” rel=”noopener nofollow”> mail In x, analysis firm Santiment has discussed the recent trend in the relationship between positive sentiment and negative sentiment for bitcoin. This metric, as the name suggests, tells us how positive sentiment compares to negative sentiment on social media platforms.
The indicator obtains its data from posts/threads/messages appearing on major social media platforms (x, Reddit, Telegram and 4Chan). To differentiate between positive and negative comments, the metric subjects this data to a machine learning model devised by Santiment.
When the indicator value is greater than zero, it means that the number of positive btc-related posts currently exceeds the negative ones. On the other hand, being negative implies that a bearish sentiment predominates on social media platforms.
Now, here is the chart shared by the analytics firm showing the trend in the relationship between positive sentiment and negative sentiment for bitcoin over the past month:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/11/Bitcoin-Enthusiasm-Remains-Low-Despite-94000-ATH-Bullish-Sign.jpeg" alt="bitcoin Sentiment” width=”3135″ height=”1756″/>
The value of the metric appears to have been positive in recent days | Source: <a target="_blank" href="https://x.com/santimentfeed/status/1858980865163796813/photo/1" target="_blank" rel="noopener nofollow">Santiment on x
As shown in the chart above, the indicator has seen a jump recently as the cryptocurrency price reached a new all-time high (ATH) beyond the $94,000 level. This would suggest that sentiment on social media has marked an improvement.
However, as Santiment has highlighted on the chart, the current level of the metric is still only within the historical “neutral” zone. In this area, there is surely some enthusiasm among traders, but also some skepticism.
Historically, bitcoin and cryptocurrencies in general have tended to move in ways that people least expect. This means that excessive FUD (i.e. a low value of the metric) has led to lows for btc, while euphoria (a high value) has resulted in highs.
Earlier this month, sentiment around the asset spiked as Trump became the 47th president of the United States. btc's local high coincided with this peak and only once sentiment cooled back to neutral was the price able to continue its ascent.
During the latest bullish leg, traders have so far not shown enthusiasm anywhere near the same degree, so it's possible that bitcoin's current rally still has room to grow before peaking.
“As long as there is disbelief among retail traders, whales can continue pumping cryptocurrencies with little resistance,” the analysis firm notes.
btc Price
At the time of writing, bitcoin is trading at around $93,600, up more than 6% from the last week.
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Looks like the price of the coin has been marching up over the last few days | Source: BTCUSDT on TradingView
Dall-E Featured Image, Santiment.net, TradingView.com Chart
