Bitcoin Traders Show Signs Of Euphoria, Will This End Rally?

Data shows that traders on social media are showing signs of euphoria right now, something that could lead to a setback for the Bitcoin rally.

Bitcoin Social Volume Suggests Rise Of Bullish Bias Among Investors

According to data from the on-chain analytics firm Santiment, BTC traders have turned optimistic on social media after the latest price surge. The relevant indicator here is the “social volume,” which tells us about the amount of discussion that social media users are taking part in related to a given topic.

How To Get Free Crypto  

The metric calculates this in terms of the unique number of posts/threads/messages that are making mentions of the term in question. By “unique,” what’s meant here is that every post is counted only once, regardless of how many mentions it contains of the topic (as long as it contains at least one, obviously).

In the context of the current discussion, Santiment has first used this metric for Bitcoin-related terms to get the info about all the posts discussing the market and has then filtered this social volume for keywords specifically related to sentiment.

To pinpoint the posts related to bullish sentiment, the firm has chosen terms such as “bullish” or “buy.” Similarly, for bearish sentiment, keywords like “bearish” or “sell” have been selected.

Here is a chart that shows the trend in the Bitcoin social volume filtered for the two sentiments over the past month:

Coinbase Banner  

The trend in discussions related to the two sentiments | Source: Santiment on X

As displayed in the above graph, the Bitcoin social volume related to bullish terms has observed a notable spike recently, implying that FOMO among the traders on social media has gone up. The bearish sentiment, on the other hand, isn’t at that high level right now.

Historically, the sentiment held by the majority has often played a part in the trajectory of BTC. Usually, the asset tends to move against the expectations of the investors. The further the holders lean towards a particular sentiment, the stronger the possibility of such a contrary move to take place.

From the chart, it’s visible that just earlier in the month, the bearish sentiment had hit some significant levels and what followed was the current rally in the cryptocurrency.

Similarly, the local top a few days ago had also occurred when the market had seen a burst of optimism. Since the bullish sentiment has once again surged among social media users with the latest leg in the rally, it’s possible that another setback may happen for BTC.

FreeBitcoin Banner  

Such a pullback could only be temporary, like the previous one was, so long as the market euphoria fades with it. Santiment notes that for further rise, the Bitcoin FUD may need to see some uptick, so that an effect similar to the bearish sentiment spike from earlier in the month can be recreated.

BTC Price

Bitcoin has gone a bit stale following its explosive rise as the asset is still trading around the $34,200 level.

Looks like the price of the coin has moved sideways in the past couple of days | Source: BTCUSD on TradingView

Featured image from Kanchanara on, charts from,

Go to Source
Author: Keshav Verma

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.