Bitcoin Dominates Weekly Social Media Chats
Nearly half of all crypto-related conversations on social media this week focused on Bitcoin as it reached new all-time highs, a level of attention that could indicate a short-term peak and potential pullback, according to sentiment platform Santiment.
“As Bitcoin's market value crept above $123.1K for the first time in its 17+ year history, there was an equally historic social dominance spike,” said Santiment analyst Brian Quinlivan in a report released Wednesday.
Quinlivan noted that 43.06% of all crypto discussions were about Bitcoin at the time its market value peaked, and described the surge in attention as “indicative of many retail traders FOMO’ing in,” pushing back against the narrative that retail investors haven't yet entered the market.
Bitwise head of research André Dragosch had stated on July 11 that Bitcoin is at new all-time highs but that retail investors are “almost nowhere to be found.” Just a few days later, on Monday, Bitcoin hit a record $123,100 on Binance before falling to $117,011, based on Nansen data.
Quinlivan explained that although a rise in social sentiment may appear bullish, historically, sharp increases in Bitcoin-related social media mentions have often preceded price drops. “Wait for the euphoria to cool down some, and you’ll likely find another key entry point coming up,” he said. He also pointed out that similar sentiment spikes preceded price drops on both June 11 and July 7.
Despite this, some analysts believe Bitcoin’s upward momentum may persist. On Wednesday, CryptoQuant analyst Axel Adler Jr said the lack of a peak signal — a metric used to gauge when the market is overheated — suggests “we’re not at a peak yet.”
Michael Harvey, head of franchise trading at Galaxy Digital, noted that while a brief consolidation may follow the recent surge, further gains are possible before the end of the month. “Consolidation around current prices is my base case given the large rally and new ATH,” he told Cointelegraph.
Sources:
https://cointelegraph.com/news/bitcoin-social-dominance-spikes-local-top-btc-price-buying-santiment