Bitcoin Surpasses $93K Level as Social Media Hype Sparks $100K Price Predictions

Santiment warns social media FOMO could signal a short-term Bitcoin correction. Analysts suggest counter-trading social media hype for better Bitcoin entry points.

Bitcoin price hit a new all-time high of $93,490 on Monday, sparking a wave of excitement on social media and setting sights on the ambitious $100K target. However, the hype might be short-lived, as on-chain analytics platform Santiment predicts a possible pullback.

As Bitcoin fiyatı soared past the $93,000 mark, social media quickly became abuzz with “$100K BTC” price predictions, just hours after the cryptocurrency hit its peak. This surge in optimism is a common occurrence after Bitcoin achieves a new record high, and it usually sparks a wave of excitement among retail investors.

However, what many traders might not know is that this type of social media activity also acts as a signal for Bitcoin’s price movement. In other words, retail traders are now able to use social media to predict where BTC is headed next.

This is possible because Santiment tracks the correlation between different types of social media activity and Bitcoin’s price performance. The company has found that when there is a lot of positive chatter about Bitcoin on social media, it usually means that retail investors are jumping in.

And since retail investors tend to be late to the party, this type of activity can signal that Bitcoin’s price is about to pull back.

Counter-Trading the Crowd

One way to use this knowledge to your advantage is to counter-trade the crowd. When social media FOMO drives Bitcoin hype, you may want to consider selling or pausing on buying.

This is because extreme optimism can sometimes lead to short-term corrections, allowing for a more favorable entry price after the hype dies down.

On the other hand, when social media sentiment is in doubt, you can use it as a buying signal, capitalizing on lower prices during phases of public uncertainty.

Bitcoin’s recent rally to new highs is exciting news, but it’s important to be aware of the different types of market signals that are out there.

Santiment’s insights can help you to make better trading decisions and avoid getting caught up in the hype. So, if you’re looking to maximize your profits in 2023, be sure to follow Santiment on social media and use their data to your advantage.

The above is the detailed content of Bitcoin Surpasses $93K Level as Social Media Hype Sparks $100K Price Predictions. For more information, please follow other related articles on the PHP Chinese website!