Bitcoin sentiment on social media has taken a bearish turn, with users urging to sell after the recent crash. This shift in sentiment may actually be a positive sign for contrarian traders waiting for an opportunity. Data from the analytics firm Santiment shows that social media is flooded with fear, uncertainty, and doubt (FUD) amidst the market downturn. The firm uses a metric called Social Volume to measure the level of discussion around certain keywords related to sentiment.
The Social Volume indicator tracks the number of posts on social media platforms that mention specific keywords related to positive or negative sentiments. By analyzing terms like buy, bottom, bullish, sell, top, bearish, the firm can differentiate between positive and negative sentiment discussions. The recent data reveals a significant spike in bearish sentiment posts following the Bitcoin price crash, indicating widespread fear among social media users.
Interestingly, the ratio between sell and buy calls on social media is currently at its highest level this year. This suggests that the majority of social media users are feeling bearish towards Bitcoin, which historically has been a signal for a potential price reversal. While buying calls had spiked after previous price drops, leading to further declines, the current shift towards bearish sentiment could indicate a turning point for the cryptocurrency.
Despite briefly dropping below $54,000 during the crash, Bitcoin has since bounced back to $55,400. The asset’s price trend has been on a downtrend recently, but the shift in social media sentiment could potentially lead to a reversal in the near future. For bold traders looking to be contrarian, the current negativity on social media may present a buying opportunity.
In addition to his work at NewsBTC, Keshav has a background in Physics and a passion for blockchain technology. He enjoys delving into on-chain analysis and explaining complex concepts in a clear and consistent manner for readers. Outside of work, Keshav is an avid football player and fan, enjoys anime and video games, and maintains a fitness routine focused on agility and strength training.
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