Bitcoin's social data feeling top-ish?

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Oct 21, 2020

Bitcoin's social data has been red hot since its move above $12k, recording the highest daily social volume since its previous price top on August 17th:

Amount of BTC-related mentions on crypto social media, last 3 months (Source: Sanbase)

Extreme social volumes during pumps can often signal 'peak hype' and increasingly irrational market confidence, and tend to coincide with short-term price consolidations or upcoming corrections.

In the past 48 hours, average BTC-related social sentiment has also switched from predominantly bearish to increasingly bullish for the first time in over 2 months:

Bitcoin-related sentiment on 'crypto twitter', last 2 years (Source: Sanbase)

On the whole, bullish sentiment is rarely a friend to cryptocurrencies. As you can see above, it's typically been extreme social volumes and predominantly bullish discourse that coincided with price reversals for Bitcoin as well as other cryptocurrencies.

Stay safe out there!

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Oct 21, 2020

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