Santiment has broken down how theย pastย few action in the Bitcoinย (BTC) price may have been influenced by the prevailing sentiment in the market.
Trends In Bitcoinย (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 isnโt expecting. The relevant indicator is the โsocial volume,โ 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 greaterย 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 Bitcoinย (BTC) and digitalย currency moreย generally. Then it filtered it for some specific terms that refer to the investorsโ mentality.
Here is a chart that shows the tendency in the Bitcoinย (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, positiveย 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 assetโs price, the indicatorโs value for the negative mentality observed a large spike.
Thisย implies that social media discussions had gotten quite bearish when this price fall tookย place. Nonetheless, once this mentality shift happened, the digitalย currency saw a local bottom formation.
Over theย following day, the coin saw some boost and broke back over the $27,000 level. Althoughย while this boost was taking place, the sentiment onceย 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, theย lowest had formed, a top tookย place asย aย resultย ofย this positive mentality spike.
Historically, the Bitcoinย (BTC) market has traditionally always moved like this; whenever the sentiment becomes asย well unbalanced towards any particular side, the market tends to show moves opposite to this sentiment held by the majority.
Bitcoin Price
Since Santiment posted its analysis and the flush in the positive sentiment, Bitcoinย (BTC) has onceย more risen over the $27,000 mark. Andย once writing, the coin is floating around $27,300, up 1 percent in the past week.
