2025-01-21 17:00:54 by NewsBTC

Bitcoin has observed a retrace from its new all-time high after users on the major social media platforms displayed overexcitement. Bitcoin FOMO On Social Media Spiked During Recent Rally In a new post on X, the analytics firm Santiment has talked about how social media reacted to the recent Bitcoin rally to the new all-time high. Whenever volatility emerges in the market, users on these platforms start sharing about which levels they think the price would visit next. This latest one was naturally no exception. To gauge how many users called for which price levels, the analytics firm has made use of the “Social Volume” indicator. This metric keeps track of the total number of posts/threads/messages on the major social media platforms that are making at least one mention of a given term or topic. The reason that the indicator doesn’t simply count up the mentions themselves is so that a few outlier posts containing thousands of mentions don’t skew the data by themselves. In order to narrow the data down to posts related to Bitcoin price calls, Santiment has entered certain price levels alongside BTC-related terms into the Social Volume. The analytics firm has divided the price targets into three groups: levels above the current one, levels below it, and levels around it. Below is a chart showing the trend in the Bitcoin Social Volume for these over the past month and a half: Looks like one of the groups registered a large spike during the latest price run | Source: Santiment on XAs is visible in the graph, the combined Bitcoin Social Volume for the prices between $110,000 and $119,000 witnessed a large spike alongside the price rally, suggesting that the social media users were optimistic about the cryptocurrency continuing its bullish momentum and exploring the higher levels next. The bets of these users have failed so far, though, as the asset has seen a retrace since their mentions have appeared. From the chart, it’s apparent that this is actually a trend that BTC has shown in the past as well. “Prices historically move the opposite direction of the crowd’s expectation, particularly in the short-term,” notes Santiment. “Being a contrarian continues to be a profitable way to swing trade, and an easy way to do so is to look at mentions of lower prices, current prices, and higher prices.” Just like how market hype leads to tops for Bitcoin, pessimism can result in bottoms. The price recovery run during the past week kicked off after social media users started expecting a bearish outcome. Thus, the Social Volume of these terms could be to keep an eye on in the coming days, as another spike in posts mentioning the lower price targets could end up being a positive sign for the rally. BTC Price At the time of writing, Bitcoin is floating around $104,500, up almost 9% in the last seven days. The price of the coin seems to have overall moved sideways during the last few days | Source: BTCUSDT on TradingViewFeatured image from Dall-E, Santiment.net, chart from TradingView.com Keshav Verma Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.