Euphoria Doesn’t Seem To Have Hit Crypto Market Yet
According to data from the on-chain analytics firm , positive sentiment has declined in the market despite the price surge. The relevant indicator here is the “social volume,” which measures the total number of social media text documents that contain a given keyword.
The text documents referred to here can be a variety of things, like tweets, Reddit threads, forum posts, Telegram messages, and more. These documents are counted on the basis of whether they mention the keyword at least once. If a document contains the term five times, it will still only contribute to the social volume by one unit, not five.Looks like both the metrics have seen a decline in their values in recent days | Source:To be more specific, for filtering the social volume for positive sentiment, Santiment has only selected the crypto text documents that contain these keywords: buy, buying, bought, bottom, bottomed, and bullish. Similarly, the firm has chosen these terms for filtering out the negative sentiment: sell, selling, sold, top, topped, and bearish.
As you can see in the above graph, the social volumes of both positive and negative sentiment-related terms have declined in the past week, despite the fact that coins like Bitcoin have seen a sharp rally during the period. This suggests that discussion around the market has gone down recently.
Something to note, however, is that the decline in the negative sentiment has been slower than in the positive sentiment. This means that the two social volumes have approached each other in the last few days, implying that the sentiment is trending toward neutral.Historically, prices of assets in the sector have topped when investors have experienced euphoria (that is, a state of highly positive sentiment), while fear and disbelief have paved way for price surges.
As the market is clearly not experiencing high levels of positive sentiment right now, and on the contrary, is observing the negative sentiment closing in on the gap, there is an improved probability that the rally could continue further.BTC Price
At the time of writing, Bitcoin is trading around $28,000, up 13% in the last week.BTC continues to hang onto $28,000 | Source: