Data suggests users on Reddit were calling to buy the recent Bitcoin dip while other social media platforms were either bearish or indecisive.
Bitcoin Social Volume Reveals How Different Social Media Platforms Reacted To Dip
According to data from the analytics firm Santiment, the different major social media platforms have been split on how to react to the recent price action in the cryptocurrency.
The indicator of interest here is the “social volume,” which keeps track of the total unique amount of posts that make mentions of 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 can provide an inaccurate representation of the actual amount of discussion taking place related to the topic.
This is naturally due to the fact that sometimes discussion around a topic can be limited to a couple of threads, but with each of them making a considerable amount of mentions.
This trend is obviously not representative of what the wider community thinks, as only the users participating in these threads are interested in the topic. Thus, counting the posts makes more sense, as this number would only go up when there is genuine interest across the platform.
Now, what Santiment has done here is that it has filtered the social volume related to Bitcoin/cryptocurrency for bearish and bullish terms for each of these four major social media platforms: Telegram, Reddit, 4Chan, and X (formerly Twitter).
Here is a chart that shows the trend in these social volumes for all these websites:
How the different social media userbases reacted to the dip | Source: Santiment on X
The bullish terms chosen by the analytics firm here are keywords like buy, bottom, and bullish. Similarly, the keywords related to bearish sentiment are sell, top, and bearish.
From the graph, it’s visible that during the recent Bitcoin plunge towards the $38,500 level, the Telegram users were mostly bearish as the social volume for terms pertaining to this mentality spiked. X users had also turned bearish, although the bullish social volume wasn’t much lower.
4Channers had seemed completely split on the trajectory of the asset, as both the social volumes were at about the same levels for the platform. Redditors appear to have been on the other end of the spectrum from Telegram and X users, as calls for buying the dip had spiked on the platform.
So far, the bets of the Redditors would have paid off, as BTC has made some recovery since the dip that they made potential buying moves at, although the scale of the surge has so far not been too much.
Historically, Bitcoin has tended to move against the expectations of the majority. Since these platforms are all split on the direction of the coin, it’s hard to say anything about where BTC would go based on the sentiment alone.
“When Telegram, Reddit, X, and 4Chan are all in an extreme level of bullish or bearish sentiment, this is the ideal time to be a contrarian and go against the crowd’s uniform presumptions about the markets,” explains 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 from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net