The post Bitcoin Hits Record High of $93,490: Social Media Hype Signals Possible Correction appeared first on Coinpedia Fintech News
The largest cryptocurrency by market cap Bitcoin has surged past $93,000 fueled by US President-elect Donald Trump’s pledge to ease crypto regulations. Meanwhile, this has sparked excitement on social media setting sights on an ambitious $100K target. However, Santiment, an on-chain analytics platform, warns that this hype might lead to a short-term pullback for BTC
Social Media Hype Signal: BTC To $100K
Santiment, a leading market intelligence platform, observed that as Bitcoin hit a record high, social media quickly became flooded with “$100K+ BTC” price predictions, just hours after Bitcoin reached its peak raising an interesting caution for traders.
According to Santiment’s analysis, social media activity often acts as a barometer for Bitcoin’s price movement. Historically, when social media activity surges with optimistic price predictions, it signals that retail investors are jumping in.
Bitcoin's incredible run has now topped out at a new all-time high price of $93,490. The hype across social media platforms is calling the tops very reliably, with the biggest signal came as $100K+ BTC price speculation poured in right at the ATH 4 hours ago.
Counter-trade… pic.twitter.com/fqn0tVEL80
— Santiment (@santimentfeed) November 13, 2024
However, the recent excitement surrounding Bitcoin’s historic high has created an atmosphere of “FOMO” (fear of missing out), where retail traders feel pressured to buy in quickly. However, experienced traders tend to approach this type of market enthusiasm with caution, as intense social media hype can sometimes signal an upcoming price pullback.
Counter-Trading the Crowd
Santiment suggests that successful traders often counter the crowd’s sentiment. When social media FOMO drives Bitcoin hype, experienced investors may see this as an opportunity to sell or pause 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.
In contrast, when social media sentiment is in doubt, traders often see this as a buying opportunity, capitalizing on lower prices during phases of public uncertainty.
Caution Flag Amidst Record-Breaking Run
While Bitcoin’s recent rally to new highs is exciting news, Santiment’s insights suggest that caution may be wise. The hype on social media can cloud objective decision-making, pushing prices into short-lived spikes.
For new and seasoned investors alike, Santiment’s recommendation to “counter-trade the crowd with confidence” serves as a reminder to assess the market calmly.
