Data shows that social media sentiment around bitcoin has turned bearish, something that could be positive for the asset’s price.
bitcoin Bearish Terms Social Volume Has Increased Recently
According to data from the on-chain analysis firm HolyThe crowd on social media has started to turn bearish on bitcoin and cryptocurrencies in general.
The relevant metric here is “social volume,” which tracks the total number of unique posts/messages/threads on major social media platforms that mention a given term or topic.
By “unique,” what is meant here is that each post that mentions the term is only counted once, regardless of how many total mentions it may make. Because of this limitation, social volume can provide a more accurate picture of what the trend looks like on social media as a whole right now.
In the context of the current discussion, Santiment has used this metric to limit posts that talk about bitcoin and cryptocurrencies and then filtered them further by sentiment-related terms.
Here is a chart showing the trend in social volume of bearish and bullish sentiments over the past week:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Social-media-users-turn-bearish-on-Bitcoin-will-they-continue.jpeg" alt="bitcoin Social Volume” width=”1785″ height=”1006″/>
Looks like the bearish sentiment has outpaced the bullish one recently | Source: Santiment on X
To identify the two sentiments, the analysis firm has used terms such as “buy”, “lower” and “bullish” for the positive and “sell”, “upper” and “bearish” for the negative.
From the chart you can see that the bearish social volume has seen an increase recently and has remained above the bullish volume. This suggests that a bearish mentality dominates social media platforms at the moment.
Generally, investors having a negative view of cryptocurrency is not a bad thing during rallies. Excessive hype is when highs are created in the market, while a feeling of fear is when lows are formed.
From the chart, you can see that the recent instances where the bearish mindset is dominant at the moment lead to local lows for the asset, followed by a resurgence in the market capitalizations of not only bitcoin but also other currencies in the sector. .
Naturally, bearish sentiment doesn’t necessarily mean that a reversal has to happen for the cryptocurrency, but it certainly makes it more likely that one will occur.
Therefore, with traders on social media platforms having a bearish mindset, bitcoin and the rest of the market could see some improvement soon.
btc Price
Since bitcoin‘s impressive rally a few days ago, the cryptocurrency has been unable to find direction as its price has remained stuck above the $34,000 level.
<img decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Social-media-users-turn-bearish-on-Bitcoin-will-they-continue" alt="bitcoin price chart” width=”1534″ height=”869″/>
The value of the asset seems to have been flat in recent days | Source: BTCUSD on TradingView
Featured image by Kanchanara on Unsplash.com, TradingView.com charts, Santiment.net
