Data shows Reddit users have been calling to buy Bitcoin’s recent dip, while other social media platforms have been bearish or indecisive.
Bitcoin social volume shows how various social media platforms reacted to the drop.
According to data from analytics company st tlyVarious major social media platforms have been divided on how to react to the cryptocurrency’s recent price movements.
The interest metric here is “social volume,” which tracks the total number of unique posts mentioning a particular topic or term on a particular social media platform or group of platforms.
This metric tracks the number of posts/threads/messages rather than the mentions themselves. This is because the latter methodology may inaccurately represent the actual amount of discussion occurring around the topic.
This is because discussion of a topic can sometimes be limited to a few threads, but each thread gets a significant amount of mention.
Because only users participating in these threads are interested in the topic, these trends are not representative of the thinking of the wider community. So counting the number of posts makes more sense. Because these numbers only go up when there is genuine interest across platforms.
What Santiment has now done is filtered the social volume related to Bitcoin/cryptocurrency for bearish and bullish conditions for each of the four major social media platforms: Telegram, Reddit, 4Chan, and X (formerly Twitter).
Below is a chart showing social volume trends for all websites.
How the different social media userbases reacted to the dip | Source: Santiment on X
The bullish terms chosen by the analyst firm here are keywords such as buy, bottom, and bullish. Likewise, keywords related to downtrends include sell, high, and downtrend.
Looking at the graph, while Bitcoin recently plummeted to the $38,500 level, Telegram users were mostly bearish, with social volume surging for terms related to this mindset. X users also turned bearish, but bullish social volume did not decline significantly.
4Channers seemed completely disconnected from the trajectory of its assets. This is because both social volumes were at roughly the same level for both platforms. Reddit users appear to be on the opposite end of the spectrum from Telegram and X users, as deep buy requests surge on the platform.
So far, Redditors’ bet may have paid off. This is because BTC has shown some recovery after the drop which has prompted a potential buying move. Although the surge has not been very large so far.
Historically, Bitcoin has tended to defy majority expectations. Since these platforms are all split on the direction of the coin, it is difficult to tell where BTC will go based on sentiment alone.
“when telegram, reddit, Xand 4 dishes Everything is extreme optimistic or bearish According to sentiment, now is the ideal time to be a contrarian and go against the crowd’s unified assumption about the market,” explains Santiment.
BTC price
As of this writing, Bitcoin is sitting around $40,200, down more than 5% since last week.
Looks like the price of the coin has made some recovery in the last couple of days | Source: BTCUSD on TradingView
Featured image by Kanchanara on Unsplash.com, chart by TradingView.com, Santiment.net