A significant proportion, 43%, of the recent social media chatter around cryptocurrencies has been about Bitcoin hitting record highs. This level of dominance might be indicative of a local peak and a potential minor pullback, as per insights from sentiment analysis platform Santiment.
“Bitcoin’s market value achieved a new record, surpassing $123.1K for the first time in its 17+ year history, accompanied by an unprecedented social dominance surge,” stated Santiment analyst Brian Quinlivan in a Wednesday report.
Quinlivan highlighted that the sudden increase in Bitcoin-related discussions coincided with the cryptocurrency’s market value peak. “Around 43.06% of all crypto conversations were about Bitcoin precisely when its market value hit a new high,” he added.
Despite the views of some industry participants who believe retail investors are yet to enter the market, Quinlivan suggests that the surge indicates a large number of retail traders succumbing to FOMO (Fear of Missing Out).
However, on Monday, Bitcoin set another record, hitting $123,100 on Binance, before pulling back to $117,011 at the time of writing, based on Nansen data.
Quinlivan advises traders to wait for the hype to die down before making a purchase. “Wait for the euphoria to cool down some, and you’ll likely find another key entry point coming up,” he mentioned.
Despite the warnings, some analysts remain positive about the Bitcoin trend. CryptoQuant analyst Axel Adler Jr. pointed out that the Bitcoin peak signal, an indicator of an overheated market, is absent, suggesting that “we’re not at a peak yet.”
Michael Harvey, Galaxy Digital’s head of franchise trading, suggested that Bitcoin might undergo a brief consolidation phase after its recent surge to new all-time highs. However, another increase before July ends is still a possibility.
