- According to Santiment, traders appear to be in a battle around Bitcoin’s $50,000 market value.
- Santiment explained that FOMO and FUD play significant roles when BTC is at a psychological level.
- Santiment’s data showed a spike in crowd euphoria as BTC climbed above $50,000 on February 13.
According to Santiment, a marketplace intelligence platform with on-chain and social metrics, traders appear to be in a battle around Bitcoin’s $50,000 market value. In a recent post on X (formerly Twitter), the analytics platform noted that Fear of Missing Out (FOMO) or Fear, Uncertainty, and Doubt (FUD) plays a significant role when the Bitcoin price is around a psychological level.
Whether Bitcoin would stay above $50,000 for the long term would be determined by the social metrics of FOMO and FUD, according to Santiment. The market intelligence platform shared a screenshot containing data that reveals the extent of those metrics under the current Bitcoin market situation.
Santiment’s data showed a spike in crowd euphoria as BTC climbed above $50,000 on February 13. At the same time, there was a significant spike in the number of users discussing whether the flagship cryptocurrency would continue rallying toward $55,000. The spike in discussions signified increased greed among Bitcoin traders and could impact future price development.
Analyzing the projected data, Santiment explained that traders anticipated BTC levels as the price climbed above $50,000 on Monday. The analytics platform spotted that as the reason behind the temporary top that formed on the Bitcoin price chart.
The market intelligence platform highlighted that the price level the crowd calls for after achieving a significant milestone provides insight into the level of greed in the market. Santiment explained that it is a sign of appropriate crowd discussion only when it celebrates a recently achieved milestone. Otherwise, an uptick to much higher levels indicates the crowd could be becoming greedy, which could lead to establishing a local top.
At the time of writing, Bitcoin had pulled back after reaching $50,385. It dropped to $48,325 before moving up again to trade for $49,784, according to data from TradingView. Following Santiment’s analysis, traders could observe Bitcoin’s social metrics to determine if a potential top is in the making or if the upward rally would continue for the pioneer cryptocurrency.
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