Bullish Social Momentum May Signal Imminent Crypto Market Breakout

CryptoMode Bullish Crypto Sentiment Too Big To Fail Small-cap

The cryptocurrency industry may see a bullish run sooner than initially expected. Although the current market momentum remains virtually unchanged, the social sentiment has shifted significantly. There is still plenty of time for accumulation, but something has to give.

The Bullish Case For Crypto In Q4 2022

It has been a rough year for the cryptocurrency industry. The trend has continued all year, as signs of a bear market started to appear in late 2021. Even though there was some upward momentum in February, March, and April, the overall market cap continued to decline month-over-month. Interestingly, that decline was halted in late June 2022 and has turned into sideways momentum.

It is common to see the crypto markets trade sideways for extended periods. That can happen during a bull or a bear market, as overall interest in cryptocurrencies remains relatively high. Moreover, traders and speculators always look for ways to make money. The smallest gain or loss can result in drastic changes to one’s portfolio. Moreover, the crypto markets never sleep, indicating there is always room to make money. 

When zooming in on the chart, there has been a momentum shift in the past week. More specifically, the total crypto market capitalization has overcome a big dip to the low $948 billion range on October 21. Since then, it has regained the $960 billion support level and hovers near $968 billion. Admittedly, it is a far cry from the $1.4 trillion people expected to see by now, but things could be far worse.

Social Sentiment Becomes More Favorable

As we have explained, the market cap is not the all-deciding metric in the cryptocurrency industry. It is a good tool, but there is much more to look at. Gauging the overall market sentiment will often provide new insights into how people approach the market today. Interestingly, there is a bullish spell this week, even if the current prices might not reflect it yet.

The first crucial metric is the overall social volume. Social mentions have increased by over 10% this week, hinting at people becoming more vocal. Additionally, there are 24.2% more contributors, which might signal newcomers have begun investing in crypto. With a healthy increase in Twitter and Medium volume, cryptocurrency is again at the center of attention. 

The bullish sentiment regarding crypto is also on the rise. This week, it is up by 21.1%, even though no established currency has made significant moves. Moreover, the bearish sentiment decreased by nearly 17%, which is always a welcome sight. However, remember these metrics reflect the current market sentiment and may not influence the market’s future direction. 

One may wonder why the social activity is picking up for cryptocurrencies. The recent launch of Aptos has certainly influenced matters. Even though the network did not live up to expectations from day one, the $APT token remains of keen interest to traders and speculators. Whether that will remain the case is a different matter, though. Other notable mentions include Bitcoin, Ethereum, Uniswap, SpookyShiba, and Solana.

Overall, there is a cautious reason to become bullish on cryptocurrencies in Q4 2022. Whether it will result in any big gains, is hard to predict. 

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