Data shows that cryptocurrency traders on social media remain optimistic about the market, something that could actually be negative for the price of bitcoin.
Bullish cryptocurrency-related terms still circulating on social media
According to data from the on-chain analysis firm Holy, social media users remain bullish on cryptocurrencies at the moment. The relevant metric here is “social volume,” which tracks the total number of unique posts, threads, or messages on social media that mention a given term.
By “unique,” what is meant here is that the metric gives equal weight to all posts that talk about the term, regardless of how many times the topic is mentioned. Due to this restriction, the indicator can provide information on social media behavior on major platforms.
If the metric has a high value, it means that a large number of users on the Internet are talking about the term. The discussion is not limited to a few threads (which might have been the case if the indicator had only counted the pure number of mentions, rather than the posts themselves).
In the context of the current discussion, Santiment gathered data from social media posts talking about bitcoin and cryptocurrencies and then calculated the social volume of sentiment-related terms by reviewing them. These terms are such as buy or bought in the case of bullish sentiment and sell or low in the case of bearish sentiment.
The following chart shows the trend in social volume of these terms for the cryptocurrency sector over the past week:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/11/Cryptocurrency-Traders-Remain-Bullish-Bad-Sign-for-Bitcoin-Rally.jpeg" alt="bitcoin Sentiment” width=”1632″ height=”1039″/>
Looks like the market is holding a bullish majority mentality right now | Source: Santiment on X
As shown in the chart above, the social volume of terms related to the bearish trend has been lower than that of the bulls recently, implying that the majority of social media users have been optimistic about bitcoin and the sector. generally recently.
Historically, these market conditions have actually not been ideal for price increases to occur, as assets have rather moved sideways or declined during periods like these.
On the chart, the analysis firm has also pointed out recent cases of this pattern. This time too, as shown by social media users, FOMO, btc and others have been falling or stagnating.
Generally, a dominant bearish sentiment has the opposite effect on the market, and rebounds may be more likely for cryptocurrencies.
This effect was in action when bitcoin initially observed its rise above the $37,000 mark recently. The coin had seen a pullback from around $38,000 to below $36,000, which had sent social media users into a panic. However, this bearish bias only benefited the market as the currency quickly recovered.
As long as social media users remain enthusiastic about the sector, btc and others are unlikely to make any headway currently. It now remains to be seen whether sentiment will calm down in the coming days, leaving room for a further rally, or whether the sector will experience some FOMO-induced pain.
bitcoin price
bitcoin has seen a pullback towards the $36,200 level in the last day, as the chart below shows.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/11/Cryptocurrency-Traders-Remain-Bullish-Bad-Sign-for-Bitcoin-Rally" alt="bitcoin price chart” width=”1534″ height=”869″/>
The value of the coin appears to have declined recently | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, Charts from TradingView.com, Santiment.net
