The sentiment on social networks about Bitcoin remains negative .
This was reported by Santiment , who points out that both the volume of Bitcoin mentions on social networks and that of those who claim to have bought during the descent (the famous “buy the dip”) are decreasing.
📊 The amount of #Bitcoin traders who are continuing to #buythedip continues to show decline as social volume toward $BTC is low and #FUD posts on #Twitter are high. Typically, this doubt and disinterest is a positive sign of an upcoming turnaround. https://t.co/jbolCsrKTQ pic.twitter.com/f1VGxJ9CIJ
— Santiment (@santimentfeed) July 7, 2021
possible turnaround on the way, as a similar dynamic has often occurred.
Bitcoin’s sentiment on social networks
The graph tweeted by Santiment shows how the volume of Bitcoin mentions on social networks for about a year now continues to vary a lot. Indeed, it seems even more variable than the price of BTC.
The latest peak occurred in conjunction with the price drop on June 8, while for example, during the even more pronounced drop on June 22, the volume of mentions remained in line with the average of the last year.
Curiously, the peak occurred after the drop on May 12, when the price dropped from $ 57,000 to just under $ 50,000, while a few days later, on May 19 when it dropped to $ 30,000, it even returned to average, and then plunging a few days later towards the lows of the last few months.
From the comparison between the peaks in the volume of mentions on social networks, and the major changes in price, there does not seem to be an obvious direct connection, and this actually is very surprising, since in general it is the greatest variations, it is faster of the price to generate the most interest.
Furthermore, this graph shows a continuous alternation of positive and negative peaks in the volume of mentions , as if it were very difficult for a relatively long period of time of tranquility to persist, as regards specifically this single metric.
Even between September and November last year, when the price moved very little compared to BTC’s volatility standards, peaks of ups and downs continued to follow one another, with only two very brief moments of tranquility in late August and late December, or in fact during holidays or holidays.
However, taking into consideration only the minimum peaks of the last few months, these were often followed by an increase in the price of bitcoin.
It should be borne in mind that the volume of Bitcoin mentions on social networks is largely generated by retail investors, while the price is also conditioned by the activities of a far smaller number of large investors, and it is possible that when the retail interest increases that of institutional ones, if the price is affordable.