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 vs. Negative Sentiment Ratio for Bitcoin. This metric, as its name suggests, tells us about how the positive sentiment compares with the negative one on social media platforms.
The indicator sources its data from the posts/threads/messages that are appearing on the major social media platforms (X, Reddit, Telegram, and 4Chan). To differentiate between positive and negative comments, the metric puts this data through a machine-learning model devised by Santiment.
When the value of the indicator is greater than zero, it means the number of positive posts related to BTC currently outweigh the negative ones. On the other hand, it being negative implies a bearish sentiment is dominant on the social media platforms.
Now, here is the chart shared by the analytics firm that shows the trend in the Bitcoin Positive Sentiment vs. Negative Sentiment Ratio over the past month or so:
The value of the metric appears to have been positive in recent days | Source: Santiment on X
As displayed in the above graph, the indicator has seen a jump recently as the cryptocurrency’s price has reached a new all-time high (ATH) beyond the $94,000 level. This would suggest that the sentiment on social media has marked an improvement.
As Santiment has highlighted in the chart, however, the current level of the metric is still only inside the historical ‘neutral’ zone. In this zone, there is some excitement present among the traders for sure, but there is also some skepticism.
Historically, Bitcoin and cryptocurrencies, in general, have tended to move in a way that the crowd least expects. This means that excessive FUD (that is, a low value of the metric) has led to bottoms for BTC, while euphoria (a high value) has resulted in tops.
Earlier in the month, the sentiment around the asset skyrocketed as Trump became the 47th president of America. BTC’s local top coincided with this spike and it was only once the sentiment cooled back down to neutral that the price could continue its upwards climb.
During the latest leg up, traders have so far not shown hype of anywhere near the same degree, so it’s possible that the current Bitcoin rally could still have room to grow before a top.
“As long as there is retail trader disbelief, whales can continue pumping cryptocurrencies with little resistance,” notes the analytics firm.
BTC Price
At the time of writing, Bitcoin is trading at around $93,600, up more than 6% over the last week.
Looks like the price of the coin has been marching up over the last few days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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