Data suggests Reddit users were calling to buy Bitcoin’s recent decline, while other social media platforms were either bearish or undecided.
Bitcoin Social Volume Reveals How Different Social Media Platforms Reacted to the Downside
According to data from the analytics company Feelingthe various major social media platforms are divided on how to react to the recent cryptocurrency price action.
The indicator that interests us here is the “social volume”, which keeps track of the total unique number of posts mentioning a specific topic or term on a given social media platform or group of platforms.
This metric tracks the number of posts/threads/messages rather than the mentions themselves, as the latter methodology may provide an inaccurate representation of the actual amount of ongoing discussion related to the topic.
This is naturally because sometimes the discussion around a topic can be limited to a few threads, but with each of them making a considerable number of mentions.
This trend is obviously not representative of what the broader community thinks, as only users participating in these discussions are interested in the topic. It therefore makes more sense to count publications, because this number will only increase when there is real interest on the platform.
Now, what Santiment did here is it filtered the Bitcoin/cryptocurrency related social volume for both bearish and bullish terms for each of these four major social media platforms: Telegram, Reddit, 4Chan and X (formerly Twitter).
Here is a graph that shows the trend of these social volumes for all of these websites:
How the different social media userbases reacted to the dip | Source: Santiment on X
The bullish terms chosen here by the analytics company are keywords such as buy, low and bull. Likewise, the keywords related to bearish sentiment are sell, high and bearish.
From the chart it is visible that during the recent Bitcoin plunge towards the $38,500 level, Telegram users were mostly bearish as the social volume of terms relating to this mentality increased. X users also turned bearish, although the bullish social volume was not much lower.
4Channers seemed completely split on the asset’s trajectory, as both social volumes were at roughly the same levels for the platform. Editors appear to have been on the other end of the spectrum from Telegram and X users, as calls to buy the dip have increased on the platform.
So far, the Redditors’ bets have reportedly paid off, as BTC has recovered somewhat from the low at which they made potential buying moves, although the magnitude of the rise was only up to present not been too important.
Historically, Bitcoin has tended to evolve against the expectations of the majority. Since these platforms are all divided on the direction of the coin, it is difficult to say anything about where BTC would go based on sentiment alone.
“When Telegram, Reddit, XAnd 4Chan are all in an extreme level of bullish Or bearish sentiment, it’s the perfect time to be contrarian and go against the crowd’s uniform presumptions about the markets,” says Santiment.
At the time of writing, Bitcoin is floating around the $40,200 level, down more than 5% over the past 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, charts from TradingView.com, Santiment.net