ChartStar, a crypto analytics firm, is mapping the number of times the word “bullish” is mentioned on Reddit related to the rising and falling price of Bitcoin (BTC).
By analyzing the weekly closing price of BTC in 2020, ChartStar finds the number of mentions of the word “bullish” shows a visual correlation with Bitcoin’s price line through six out of seven weeks. ChartStar only counted each Reddit comment once, so that a comment with multiple “bullish” mentions won’t skew the results.
In addition, when charting the number of overall comments on crypto subreddits in 2014 through 2019, the data indicates “several significant price movements are [preceded] by a noticeable change in Reddit comment frequency.” Those moments are circled in the chart below.
The analytics firm also created charts comparing the number of times Ethereum (ETH) and Litecoin (LTC) were mentioned across Reddit, finding that spikes in the number of mentions closely track the price action of the second and sixth-largest coins by market cap.
ChartStar also plotted mentions of “lambo” in specific subreddits, like r/bitcoin, r/cryptocurrencies, r/ethtrader, r/dogecoin and a handful of others, against the price of Bitcoin, showing the number of mentions displays a visual correlation to the price of BTC.
Featured Image: Shutterstock/Jacob Lund