Data shows social media users had become overly excited about Bitcoin after the recent rally, which may be why BTC has retraced.
Bitcoin Topped Out As Hype Around The Coin Shot Up
According to data from the analytics firm , crowd sentiment around BTC has noted a sharp surge recently. The indicator of relevance here is the “Positive vs. Negative Sentiment Ratio,” which keeps track of the difference between the positive and negative comments related to Bitcoin that are being made on social media platforms.
The indicator separates posts related to negative and positive sentiments by putting them through a machine-learning model devised by the analytics firm.
When the value of this metric is greater than 0, it means the social media users are participating in more positive talks than negative ones. On the other hand, it being under this threshold suggests the dominance of bearish sentiment on these platforms.
Now, here is a chart that shows what the Positive vs. Negative Sentiment Ratio’s recent trajectory has been like:
The value of the metric appears to have been high recently | Source:
As displayed in the above graph, the Bitcoin Positive vs. Negative Sentiment Ratio had observed a significant surge during the cryptocurrency’s earlier run toward the $66,000 level.
Yesterday, when Santiment shared the post, social media users made 1.8 bullish posts for every 1 bearish post. Thus, the traders had become quite optimistic after the price surge. This, however, may not have been an ideal development for the coin.
Historically, BTC has tended to move in the direction opposite to what the crowd is expecting, with the probability of a contrary move only rising the more lopsided the sentiment gets.
Today, Bitcoin has retraced back under the $64,000 level, a possible indication that the earlier hype that the social media users had shown has backfired, just like it has done many times.
It’s also not just the social media users that have been excited recently, as the Fear & Greed Index, an indicator created by that considers more factors than just social media, has also been showing a rising optimism in the sector.
The trend in the Fear & Greed Index over the past few months | Source:
The Fear & Greed Index currently sits at a value of 61, which suggests that the investors are leaning towards being bullish around Bitcoin and the cryptocurrency sector in general.
The sentiment-related indicators could follow in the coming days, as they may dictate whether BTC can regain its bullish momentum. The crowd calming down would be a sign in the right direction if history is to go by.
BTC Price
After the latest plunge, Bitcoin has returned to the $63,400 level.
Looks like the price of the coin has plummeted over the past day | Source:
Featured image from Dall-E, Alternative.me, Santiment.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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