Data shows calls for sub-$60,000 Bitcoin prices have seen a rise on social media recently, a sign that fear is brewing among retail traders.
Bitcoin Social Volume Data Suggests Growth In Bearish Calls
In a new post on X, on-chain analytics firm Santiment has talked about how social media users have reacted to the recent bearish price action. The indicator of relevance here is the “Social Volume,” measuring the total number of posts on the major social media platforms that contain mentions of a given term or topic.
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To separate between bullish and bearish predictions, Santiment has filtered the Social Volume of Bitcoin with terms referencing certain price levels. For the bullish side, the analytics firm has chosen levels in the $90,000 to $99,000 range, while for the bearish one, $50,000 to $59,000.
Now, here is the chart shared by Santiment that shows how the Social Volume related to the two types of Bitcoin market calls has changed during the latest price volatility:
As displayed in the above graph, the Bitcoin Social Volume for levels above $90,000 spiked toward the end of last month, suggesting social media users were expecting the cryptocurrency to revisit the higher levels. What followed the spike, however, was a notable drawdown for the asset’s price.
Then, on the last day of the month, the trend flipped as bearish calls observed a sharp surge instead. BTC’s decline temporarily cooled alongside this and prices saw a small rebound.
This pattern of Bitcoin going in the direction that goes against the opinion of the majority is actually something that has been witnessed throughout history. Naturally, it doesn’t always happen, but the chances of a reversal tend to go up whenever the traders are leaning into one direction too heavily.
From the chart, it’s visible that social media users have recently once again started leaning in on a direction, and, like the last time, they are fearing sub-$60,000 price levels. The analytics firm explained:
Markets move opposite to what the crowd expects, meaning there can at least be founded arguments for a short-term relief rally while retail is already assuming sub-$60K Bitcoin is a foregone conclusion.
It now remains to be seen how the cryptocurrency’s price will develop in the near future, given the rise in fearful sentiment that has occurred on the various social media platforms.
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In some other news, the Bitcoin supply sitting on centralized exchanges has been on the rise recently, as CryptoQuant author Axel Adler Jr has highlighted in an X post.
As data of the Exchange Reserve indicator shows, 34,000 BTC has returned to exchanges since January 19th.
BTC Price
Bitcoin has continued to slide down as its price has now reached the $73,600 mark.
Featured image from Dall-E, chart from TradingView.com
