Bitcoin Sentiment Measure Reached New Heights In March As Prices Made History

A key measure of how market participants feel about bitcoin attained its loftiest value on record last month, reaching this milestone the same day that prices attained fresh highs, according to figures from analytics provider The Tie.

Long-term bitcoin sentiment, which the aforementioned analytics company calculates by evaluating how optimistic recent posts on X (formerly Twitter) are compared to a more long-term average, reached a value of 85.7 on March 13th, additional data supplied by The Tie reveals.

The aforementioned indicator reached this new pinnacle the exact same day that the digital currency’s price set a new record above $73,000.

The chart below displays this activity:

More specifically, this long-term sentiment indicator measures how positive these posts were over the last 50 days and compares it to the last 200 days.

If the measure is 50 or higher, it means that market participants were more optimistic during the more recent period than they were during the more long-term one. Any figure below 50 points to the exact opposite.

It is worth noting that bitcoin’s long-term sentiment hit an all-time high in mid-March after setting a previous record, where the indicator reached 82.07, on March 5th.

This particular activity is displayed below:

It is worth noting that this long-term measure of bitcoin sentiment has increased significantly over the last several months, rising more than 400% after falling to a recent low of roughly 14.98 in October 2023.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.