Santiment has broken down how the past few action in the Bitcoin (BTC) price may have been influenced by the prevailing sentiment in the market.
Trends In Bitcoin (BTC) Social Volume May Have Influenced The Price Recently
As the on-chain analytics company Santiment explained, Bitcoin traditionally moves in the direction the crowd isn’t expecting. The relevant indicator is the “social volume,” which measures the total number of social media text documents discussing a given term or topic.
The social media text documents here refer to a collection of social media posts collected by Santiment that have been sourced from numerous trending platforms like Twitter, Reddit, and Telegram.
This indicator only checks whether a text document in this collection mentions the term at least once; posts with greater than one mention of the topic are still given the same weight as a document that only does it once.
To use this indicator for pinpointing discussions related to market sentiment, the analytics company 1st found the social volume of Bitcoin (BTC) and digital currency more generally. Then it filtered it for some specific terms that refer to the investors’ mentality.
Here is a chart that shows the tendency in the Bitcoin (BTC) social volume for negative and positive sentiments over the last week:
The terms used here to separate the discussions related to positive sentiment are buy, positive tendency, and bottom. Similarly, sell, top, and bearish are some of the terms that have been used for finding negative talks.
In the graph, Santiment has marked the pattern that the social volumes of these sentiments followed during the past couple of days. On the 21st, following the decline in the asset’s price, the indicator’s value for the negative mentality observed a large spike.
This implies that social media discussions had gotten quite bearish when this price fall took place. Nonetheless, once this mentality shift happened, the digital currency saw a local bottom formation.
Over the following day, the coin saw some boost and broke back over the $27,000 level. Although while this boost was taking place, the sentiment once more turned positive.
By the time the price went over $27,000, though, the social volume of the greedy sentiment had reached pretty high values. Like when the negative sentiment had become overwhelming, the lowest had formed, a top took place as a result of this positive mentality spike.
Historically, the Bitcoin (BTC) market has traditionally always moved like this; whenever the sentiment becomes as well unbalanced towards any particular side, the market tends to show moves opposite to this sentiment held by the majority.
Since Santiment posted its analysis and the flush in the positive sentiment, Bitcoin (BTC) has once more risen over the $27,000 mark. And once writing, the coin is floating around $27,300, up 1 percent in the past week.