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Social media users calling to buy dip below $66,000 — TradingView News
Data shows that traders on social media called to buy during Bitcoin’s latest dip below $66,000, a sign that FOMO is active in the market.
Bitcoin investors are showing FOMO after the recent decline
As analytics firm Santiment pointed out in a new post on X, the cryptocurrency’s recent decline has triggered the second-largest spike in buying interest among social media users in the past two months.
The indicator of interest here is “Social Volume,” which tracks the amount of discussions related to a topic or term that users of major social media platforms participate in.
This metric makes this measurement by counting the unique number of posts/threads/messages on these platforms that mention at least one keyword.
The reason the indicator counts posts rather than mentions themselves is that sometimes a large number of mentions can appear on social media. However, the placement of these mentions may be limited within niche circles.
The total number of posts mentioning a topic only increases when broader social media users also engage with the term. Therefore, social volume can provide a more accurate representation of the actual level of conversation surrounding the keyword.
In the context of the current discussion, Santiment used this indicator to identify data related to terms related to the buying and selling of Bitcoin. The chart below shows how social volume for these two topics has changed over the last month or so.
BTC News
As seen in the graph above, the combined social volume of phrases related to “buy Bitcoin” just observed a sharp spike. This sharp increase in the indicator occurred while the price of the cryptocurrency fell.
It would appear that users on social media believe this drop is a worthy purchase. The chart shows that the scale of this buying interest is the largest seen in the market since BTC rallied above $70,000 last month.
It is also evident, however, that BTC peaked not immediately after this peak social volume arrived. This has often been the pattern observed, as the price is more likely to correct when FOMO takes over the masses.
In general, any negative effects of FOMO can be canceled out if a sufficient amount of FUD also forms in the market at the same time. As highlighted in the chart, however, the social volume of terms related to “sell Bitcoin” remained low despite the spike in requests to buy.
Therefore, this high optimism regarding the withdrawal could suggest that perhaps the bottom has not yet arrived for the cryptocurrency.
Bitcoin price
It would appear that the bearish effect of social media FOMO is already impacting Bitcoin as its price saw a further drop below $66,000 following the peak in Social Volume.