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Data shows that Bitcoin investors are showing a high amount of hype around the break above $30,000, something that may end up backfiring.
Bitcoin Investors Are Showing High Levels Of Euphoria Currently
According to data from the on-chain analytics firm Santiment, euphoria in the market is currently significantly more than what was observed following the break above the $25,000 level last month.
The indicator of interest here is the “Social Volume,” which tells us about the degree of discussion that’s taking place around a specific topic (like Bitcoin or the cryptocurrency market in general).
This metric makes this measurement by counting the total number of social media text documents that mention the given keyword. The social media text documents here refer to a collection of data sourced from social media websites like Twitter, Reddit, and Telegram.
Something to note about the indicator is that it doesn’t measure how many mentions the term is getting on social media, but rather how many of the text documents contain it at least once. For example, if a Reddit thread mentions “Bitcoin” five times, the post will still only contribute one unit towards BTC’s Social Volume.
Now, here is a chart that shows the trend in the Social Volume for the cryptocurrency market specifically filtered for terms related to Bitcoin’s break above the $30,000 level:
The value of the metric seems to have been quite high over the past day | Source: Santiment on Twitter
As shown in the above graph, to get only the Social Volume for discussions related to the Bitcoin price breakout, these terms have been chosen by the analytics firm: $30k, 30k, $30,000, and 30,000.
It looks like the indicator’s value has seen a massive spike for these terms during the last day. This obviously makes sense, as any sudden price movements such as the one being seen now generally get the asset under the spotlight, and with such attention naturally follow discussions on social media.
The scale of the spike, however, is still extraordinarily large here and shows how hyped investors are about this rally. In the chart, Santiment has also displayed the Social Volume for $25,000-related terms, to showcase how the current spike compares with the earlier break above that level.
It’s clearly visible that the Social Volume spike seen during the surge above $25,000 last month was quite a bit smaller than the one observed this time. Back then, the price continued to rise beyond the level for a while, but it eventually hit a local top and tumbled back down.
Such a high amount of hype is usually a sign that euphoria is building up among the investors, which is something that has historically led to the cryptocurrency observing a pullback.
As euphoria could be hitting the market once again right now, it’s possible that the coin may see a retreat below the $30,000 mark. However, a pullback, if one happens, doesn’t necessarily have to last for too long, as BTC was able to bounce back from the $25,000 hype top quickly enough.
BTC Price
At the time of writing, Bitcoin is trading around $30,100, up 7% in the last week.
Looks like the value of the asset has rapidly risen today | Source: BTCUSD on TradingView
