Does Bitcoin Bottom? Buy the Dip Sentiment Erodes Down to $60,000
Since March's record high, Bitcoin has fallen. Crypto traders have a buy-the-dip mindset, anticipating the correction will stop shortly and Bitcoin will rise to new highs.
According to crypto analytics firm Santiment, the pleasure of buying ‘cheap’ Bitcoin is diminishing as consolidation continues around $60,000 pricing. Price history suggests that this fading buy-the-dip mindset may indicate a Bitcoin bottom, as Santiment wrote.
Does Bitcoin Bottom?
After weeks of range trading, Bitcoin fell from $63,000 to $60,000 on Friday. According to Santiment, social media conversations show traders are less interested in purchasing the dip.
This may scare investors, but Santiment says Bitcoin's distinctive price behavior over the years is usually a strong indicator that the bottom is close.
To elaborate, Bitcoin drops from all-time highs frequently sour sentiment. However, as social media "buy the dip" rhetoric fades, the bottom is typically closer than most people expect.
The receding “buy the dip” chatter signals weak and fearful bears have sold and bulls are positioning.
Unfortunately, pricing can only be determined thereafter. However, Bitcoin fundamentals and major support levels have not breached. If Bitcoin stays over $60,000, the bottom may be in.
The bullish Spot Bitcoin ETF narrative fueling mainstream acceptance remains, therefore the crypto might revert into full bullish activity shortly.
Other indications suggest Bitcoin's bottom is approaching. Crypto expert Willy Woo highlighted that Bitcoin's risk signal just printed a lower high, which often precedes a positive trend.
Bitcoin trades around $61,000, down 4.2% in seven days. Bitcoin may have reached its lowest, but this calm might last for months until the half supply is reflected into its price.
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