- Bitcoin’s “Extreme Fear” sentiment correlates with a 1.99% price drop to $58,459, reflecting historical fear-phase patterns.
- Social volume spikes during Bitcoin price surges but declines from mid-July, signaling waning community interest amid volatility.
- Fluctuating social volume highlights market sentiment’s impact on Bitcoin price movements, with engagement rising during price spikes.
Recent fluctuations in market sentiment have placed Bitcoin in the “Extreme Fear” phase, raising concerns among the market. The current market sentiment, based on historical trends, appears to correlate with Bitcoin’s downward price movements. As shown by various indicators, the relationship between sentiment and price remains closely tied, offering insights into potential market behavior.
Fear and Greed Dynamics in the Bitcoin Market
The Bitcoin market is now experiencing a phase of “Extreme Fear,” as indicated by sentiment analysis tools. Historically, such phases align with periods of price decline, showing that fear often correlates with lower prices.
Source: Santiment
Conversely, periods of greed, typically associated with higher prices, tend to appear when sentiment is more positive.
At press time, Bitcoin was trading at $58,459.53, a 1.99% decrease in the last 24 hours. The overall market cap stands at $1.15 trillion, with a notable increase in 24-hour volume reaching $19.33 billion, marking a rise of 33.05%.
Social Volume and Bitcoin Price Movements
Social volume, reflecting Bitcoin’s presence on social media platforms, fluctuates in hand with price movements. Spikes in discussions often coincide with notable price changes. During periods of price surges, particularly in early March and May, social volume increased significantly.
However, from mid-July onwards, a decline in social volume occurred despite price volatility, indicating waning interest. These fluctuations suggest that social engagement is influenced by price activity, with increased social volume signaling higher engagement during periods of significant price movement.
Correlation Between Social Volume and Market Engagement
The data shows a strong link between social volume and price movement, with engagement rising during notable price actions. However, there are periods where social volume remains stable or declines, even as the price changes.
This suggests varying levels of attention among the community based on the broader market sentiment. Notably, declining social volume may indicate reduced engagement, especially during periods of price drops.
The interaction between social volume and price behavior offers valuable insight into market dynamics, reflecting the psychological aspect of Bitcoin’s market cycles.
The post Bitcoin Market Fear Reaches New Lows as Price Declines and Social Volume Dips appeared first on Crypto News Land.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed