Quick take:
- Positive twitter comments related to Bitcoin are near a 6-month high
- The last time the sentiment was this high, was during the Bitcoin halving in May
- This is the fourth time Bitcoin’s Twitter sentiment has been at these levels since 2017
- This is despite the recent dip to $16,300 levels
- High Bitcoin sentiment could be another sign of a possible top by BTC
Positive twitter comments with respect to Bitcoin (BTC) are nearing a 6 month high. This is according to data from the team at Santiment who also point out that negative comments have been on a decline. The team also plotted Bitcoin’s price (grey) alongside both positive (green) and negative commentary (red) as seen in the following chart.
From the chart above, it can be observed that the last time Bitcoin’s positive Twitter commentary was this high, was during May’s Bitcoin halving event. Back then, investors were very optimistic regarding the long term value of Bitcoin despite the Coronavirus crash of mid-March having happened only a few weeks prior.
4th time Bitcoin’s Positive Twitter Commentary is this High
The team at Santiment further pointed out that this was the fourth time that Bitcoin has had a positive Twitter commentary this high. This is despite the King of Crypto experiencing a 16% dip to the $16,300 area. The team elaborated on this via the following statement and accompanying chart.
Bitcoin has edged up this Saturday, as positive commentary has remained optimistic despite the -15.6% retrace down to $16,370 on Thanksgiving. This is only the 4th time since 2017 that $BTC sentiment has swayed this positive.
Bitcoin’s Positive Sentiment Could Mean BTC Has Topped
From the above chart, it can be noted that Bitcoin experienced a significant pullback on the last three occasions that its Twitter sentiment was this high. This means that the current high Bitcoin positive sentiment could signal a local top for BTC.
The Fear and Greed index further provides evidence of a possible top as it has been constantly above 80 since the beginning of November. In the same month, the Fear and Greed index has reached 94 on three occasions and is currently at 87.
Investors being optimistic or greedy about Bitcoin is usually a tell-tale sign that it might be time to start taking profits. Evidence of this can be seen a few days ago when several Bitcoin whales sold their bags when BTC hit $19,300 and before the collapse to $16,300.
