Bitcoin Hype Bites Back As BTC Crashes Under $64,000
01 Octobre 2024 - 9:00AM
NEWSBTC
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 Santiment, 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.
Related Reading: Bitcoin Breaks $66,000, But Analyst Warns Against
Fresh Longs—Here’s Why 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: 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
Alternative that considers more factors than just social media, has
also been showing a rising optimism in the sector. 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. Related Reading: Shiba Inu
Rallies 34%, But Will FOMO End The Rally? 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. Featured image from Dall-E, Alternative.me, Santiment.net,
chart from TradingView.com
Optimism (COIN:OPUSD)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Optimism (COIN:OPUSD)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024