Data shows that Bitcoin traders have been clamoring on social media for the price to reach a new all-time high (ATH) after breaking above $52,000.
Hype Among Bitcoin Investors Has Risen As Price Continues To Rally
According to data from the analytics firm Santiment, Bitcoin investors have been loud in their celebrations about the asset breaching the $52,000 level in its latest rally continuation.
The indicator of interest here is the “Social Volume,” which keeps track of the amount of discussion a given topic or term receives on the major social media platforms.
The metric measures this value by counting the number of posts/threads/messages that make at least one mention of the topic. The indicator does this rather than just counting the mentions because this methodology tends to be more accurate.
Sometimes, a few posts can blow up and see many mentions related to a topic, so if the Social Volume kept track of the mentions themselves, it would spike in such situations, even if the talk is zero everywhere else.
Keeping track of the posts instead ensures that the metric would only spike if the discussion occurs across social media rather than just some niche circles.
Now, to gauge hype in the market, what Santiment has done is that it has filtered the Social Volume for terms related to all-time high and $52,000. The chart below shows the trend in the metric for these topics over the past week or so:
As displayed in the above graph, the Social media Volumes for both terms have spiked following Bitcoin’s break above the $52,000 level, implying that the rally has ignited much social media discussion.
Historically, however, excessive hype in the market has been something that has turned out to be negative for the asset’s price. In the chart, the analytics firm has marked recent instances when greed spiked in the market in this fashion.
“As we have seen throughout this tremendous #bullcycle, excessive celebrations from the crowd after specific thresholds are crossed often result in local tops form immediately after,” notes Sentiment.
“This is particularly true when traders on social media are unironically bringing up the likelihood of All Time High’s coming up,” says the analytics firm. Given the Social Volume, the Bitcoin traders seem to have been doing exactly that during the latest surge.
The coin may soon hit at least a local high if traders continue to behave greedily on social media platforms.
BTC Price
At the time of writing, Bitcoin is trading at around $52,700, up 17% over the past week.
