The data suggests that Reddit users were calling to buy bitcoin's recent dip, while other social media platforms were bearish or indecisive.
bitcoin Social Volume Reveals How Different Social Media Platforms Reacted to the Drop
According to data from the analytics firm HolyDifferent major social media platforms have been divided on how to react to the cryptocurrency's recent price action.
The indicator of interest here is “social volume,” which tracks the unique total number of posts that mention a specific topic or term on a given social media platform or group of platforms.
This metric tracks the number of posts/threads/messages rather than mentions themselves, as the latter methodology can provide an inaccurate representation of the actual amount of discussion taking place regarding the topic.
Naturally, this is due to the fact that sometimes the discussion on a topic may be limited to a couple of threads, but each of them makes a considerable number of mentions.
Obviously, this trend is not representative of what the community at large thinks, since only users who participate in these threads are interested in the topic. Therefore, counting posts makes more sense, as this number will only increase when there is genuine interest in the platform.
Now, what Santiment has done here is that it has filtered the bitcoin/cryptocurrency related social volume in bearish and bullish terms for each of these four major social media platforms: Telegram, Reddit, 4Chan and X (formerly Twitter).
Here is a graph showing the trend in these social volumes for all of these websites:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/01/Redditors-got-ahead-of-the-crowd-by-buying-Bitcoin-on.jpeg" alt="bitcoin Sentiment” width=”2242″ height=”1727″/>
How the different social media userbases reacted to the dip | Source: Santiment on X
The bullish terms chosen here by the analysis firm are keywords like buy, bottom and bullish. Similarly, keywords related to bearish sentiment are sell, up, and bearish.
From the chart, you can see that during bitcoin's recent drop towards the $38,500 level, Telegram users were mostly bearish as the social volume of terms related to this mindset skyrocketed. X users had also turned bearish, although the bullish social volume was not much less.
4Channers seemed completely split on the asset's trajectory, as both social volumes were at roughly the same levels for the platform. Redditors appear to have been at the other end of the spectrum from Telegram and X users, as calls to buy the dip had spiked on the platform.
So far, the Redditors' bets would have paid off, as btc has recovered somewhat since the dip in which they made potential buying moves, although the scale of the rise so far has not been much.
Historically, bitcoin has tended to move against majority expectations. Since all of these platforms are divided on the direction of the coin, it is difficult to say anything about where btc would go based on sentiment alone.
“When Telegram, reddit, xand 4Chan Everyone is at an extreme level of bullish either bearish feeling, this is the ideal time to be contrary and go against the crowd's uniform assumptions about the markets,” explains Santiment.
btc Price
At the time of writing, bitcoin is floating around the $40,200 level, down more than 5% over the past week.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/01/Redditors-got-ahead-of-the-crowd-by-buying-Bitcoin-on" alt="bitcoin price chart” width=”1534″ height=”868″/>
Looks like the price of the coin has made some recovery in the last couple of days | Source: BTCUSD on TradingView
Featured image by Kanchanara on Unsplash.com, TradingView.com charts, Santiment.net
