Bitcoin Hype Remains Low Even After $63,000 Surge: Green Sign For Rally?
21 Setembro 2024 - 7:00AM
NEWSBTC
Data shows the social media users have yet to show excessive hype
around the latest Bitcoin rally, a sign that could be positive for
its sustainability. Bitcoin Sentiment Ratio Has Spiked, But Value
Still Not Too High According to data from the analytics firm
Santiment, Bitcoin Fear Of Missing Out (FOMO) has remained low
through the latest rally. The indicator of relevance here is the
“Positive Sentiment vs. Negative Sentiment Ratio,” which, as its
name suggests, measures the ratio between the positive and negative
comments around BTC being made on the major social media platforms.
Related Reading: These Altcoins Are Seeing High Whale Interest
After Fed Rate Cut To separate the posts/threads/messages on these
platforms between positive and negative, Santiment’s indicator uses
a machine-learning model. When the value of this metric is greater
than 1, it means the social media users are making more posts
expressing a positive sentiment than a negative one. On the other
hand, it being under 1 suggests bearish messages are the norm on
these platforms. Now, here is a chart that shows the trend in the
Bitcoin Positive Sentiment vs. Negative Sentiment Ratio over the
last few months: As the above graph shows, this Bitcoin indicator
has observed an uplift alongside the latest recovery run in the
cryptocurrency’s price. This rally has come as the US Federal
Reserve has announced an interest rate cut. The indicator is
currently decently above the neutral mark, meaning that positive
posts notably outweigh the negative ones. Historically, the asset
has tended to move in a direction opposite to what the crowd is
expecting, with the probability of the contrary move going up the
stronger this expectation becomes. A very bullish market can be a
warning sign for the BTC price. Despite the recent surge in
sentiment, FOMO is not yet at a level where it would be a problem.
The chart shows that the previous spikes in the indicator that
occurred around the tops for Bitcoin were of a significantly large
scale. The last few months have also seen the indicator generally
maintain a positive level, so the metric’s current value isn’t even
that out of place when compared to the norm. “Markets can roll
until we see a bullish sentiment spike similar to what we saw
during the April 19th and May 21st tops,” notes the analytics firm.
If FOMO does end up spiking to high levels in the coming days, BTC
could encounter another top. Related Reading: Crypto Shorts Suffer
$147 Million Squeeze As Bitcoin Returns Above $63,000 When that
happens, another foray into the negative sentiment zone could be to
wait since, as highlighted in the graph, the last two such
instances proved to be profitable buying points into Bitcoin. BTC
Price Bitcoin has enjoyed a surge of almost 6% over the past week,
bringing its price back to the $63,200 mark. Featured image from
Dall-E, Santiment.net, chart from TradingView.com
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