Bitcoin, the world’s most popular cryptocurrency, has been on a downward trend since hitting its all-time high in March. This decline has sparked a ‘buy-the-dip’ sentiment among crypto traders who believe that the correction is temporary and that Bitcoin will soon bounce back to new highs. However, according to crypto analytics platform Santiment, this sentiment seems to be fading as Bitcoin continues to consolidate around the $60,000 price mark.
The diminishing ‘buy-the-dip’ mentality could actually be a positive sign, according to price history. Typically, when Bitcoin crashes from all-time highs, sentiment becomes quite negative. However, the fading talk of buying the dip on social media often indicates that the bottom is near. This suggests that weak and scared bears have already sold, and the bulls are beginning to position themselves for a potential upward move.
While it is difficult to predict with certainty whether Bitcoin has bottomed out, key support levels on the chart remain intact, and the fundamentals of Bitcoin have not changed. If Bitcoin can maintain its position above $60,000, it could be an indication that the bottom is in sight. Despite the current price of $60,991, there are indications that Bitcoin could soon experience a bullish reversal.
Several factors suggest that Bitcoin might be approaching its bottom. Notably, the risk signal for Bitcoin has recently formed a lower high, a pattern that often precedes a bullish trend. Additionally, the bullish narrative around the Spot Bitcoin ETF continues to drive mainstream adoption of the cryptocurrency. Furthermore, on-chain data shows that new whale addresses are quietly accumulating Bitcoin, indicating that some investors see value in acquiring the cryptocurrency at its current price levels.
The fading ‘buy the dip’ sentiment among crypto traders could be a signal that Bitcoin is nearing its bottom. While there is no definite way to confirm this until after the fact, the current market conditions suggest that Bitcoin may be poised for a turnaround. With key support levels holding strong and bullish indicators emerging, Bitcoin’s price movement in the coming weeks and months will be crucial in determining whether the cryptocurrency has indeed reached its bottom.