Is The Bitcoin Bottom In? Buy The Dip Sentiment Erodes Amid Drop Toward $60,000
12 May 2024 - 10:30PM
NEWSBTC
Bitcoin has been sliding down since it reached its all-time high in
March. This has largely led to a buy-the-dip sentiment among crypto
traders, with many believing the correction would end as soon as it
ended and Bitcoin would surge again to new all-time highs.
Related Reading: Unlocking The Dogecoin Code: One Factor Holds The
Key To Its Next Ascent According to crypto analytics platform
Santiment, the thrill of scooping up ‘cheap’ Bitcoin appears to be
fading as the consolidation drags on around the $60,000 price mark.
As Santiment noted, this fading buy-the-dip mentality could
actually be a signal that Bitcoin is nearing a bottom, according to
price history. Is The Bitcoin Bottom In? Bitcoin tumbled from
$63,000 to $60,000 on Friday, extending its run of range trading in
the past few weeks. As noted by Santiment, traders are becoming
less enthusiastic about buying the dip according to social media
interactions. While this might be worrying for some investors,
Bitcoin’s unique price movement over the years has prompted
Santiment to note this is generally a good sign that the bottom is
nearing. To explain this further, the sentiment usually turns quite
negative when Bitcoin crashes from all-time highs. But
historically, the point at which “buy the dip” talk on social media
starts to fade is often a sign the bottom is near than most people
will think. The fading “buy the dip” talk suggests the weak and
scared bears have sold and the bulls are starting to position
themselves. 🤔 Traders are showing weak #buythedip interest in
#Bitcoin‘s latest retrace down to as low as $60.2K today.
Generally, the crowd’s lack of faith is a strong sign of prices
being close to a #bottom. Track social interest levels to see if
#FUD stays high. https://t.co/cZjTWcCnL2 pic.twitter.com/Nj19XkIdgq
— Santiment (@santimentfeed) May 10, 2024 Unfortunately, there’s no
way to know for sure if prices have bottomed out until after the
fact. However, key support levels on the Bitcoin chart haven’t
broken down and fundamentals haven’t changed. If Bitcoin continues
to hold above $60,000, this could signal the bottom is in. Bitcoin
is now trading at $60.991. Chart: TradingView BTC Risk Signal Hits
Lower High – Woo At the same time, the bullish Spot Bitcoin ETF
narrative driving increasing mainstream adoption is still in place,
meaning the crypto could reverse into a full bullish action very
soon. Other key factors also point to Bitcoin nearing its bottom.
As noted by crypto analyst Willy Woo, Bitcoin’s risk signal
recently printed a lower high, which is a formation that frequently
paves the way for a bullish trend. At the time of writing, Bitcoin
is trading at $61,000 and is down by 4.2% in the past seven days.
Although Bitcoin might have formed its bottom, this lull action
could continue into the next few months until the crunching supply
of the halving gets factored into its price. Related Reading:
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Remarkably, some new whale addresses are silently accumulating
Bitcoins. On-chain data from Whale Alerts shows the recent movement
of 1,999 BTC into new private addresses. Featured image from
Pexels, chart from TradingView
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