Bitcoin recorded a reproduction to USD 107,000 shortly after social media moods have reached the highest for months. Did the retail Fomo act as a contradictory signal?
Positive/negative bitcoin mood has recently observed a piercing jump
IN post On Wednesday, the analytical company Santiment discussed how the mood was around Bitcoin on the main platforms of social media, based on the indicator of positive/negative sentiment.
A positive/negative sentiment tells us how its name suggests, how they now compare positive and negative comments related to a given topic or date on social media.
The indicator works by filtering bars/threads/messages on these platforms for the keyword, and then placed them by a machine learning model, which can distinguish between the sentiment of stubborn and bear. It counts the number of posts belonging to each type and calculates their attitude.
Now there is a chart divided by Santiment, which shows the trend in positive/negative bitcoins in the last few months:
The value of the metric appears to have gone through a piercing rise in recent days | Source: Santiment on X
As shown in the graph above, positive/negative moods of Bitcoins have recently observed a rapid escalate in the zone above level 1.0 and reached a high level of 2.1. This value corresponds to 2.1 stubborn comments to each bear on social media platforms.
This peak 2.1 was the greatest value in relation to the re -election of Donald Trump as the US president seven months ago. That is why it seems that traders were in a fairly good mood around BTC.
This stubborn mood was of course the result of the cryptocurrency recovery rally to levels similar to its highest level (ATH). However, despite the positive sentiments, BTC recorded a piercing decline in the last day. The trend of the fall, which takes place after noise in social media, is not really an unknown pattern, because Bitcoin and other digital resources saw how many times it is shaped.
It turns out that markets often move in a direction that is against the expectations of the crowd. This may be used both ways, which means that bear can also lead to DNA.
As it is likely, the sentiment will affect the direction of Bitcoin, it can reduce the strength of opinions among traders. Positive/negative moods previously indicated a relatively high level of FOMO, so it could act as a signal contradictory to assets.
Sentiment in social media can now be worth observing, because reacting retail investors could give tips on the future of BTC.
BTC price
Bitcoin traded more than USD 110,000 yesterday, but its price dropped to USD 107,000 to withdrawal.
The trend in the BTC price over the past five days | Source: BTCUSDT on TradingView
A distinguished painting with Dall-E, Santiment.net, chart from tradingview.com
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