Bitcoin has been on a downward trend since hitting its peak in March. Initially, many traders were buying the dip, expecting the correction to end soon and Bitcoin to surge again.
Fading “Buy the Dip” Sentiment
However, according to Santiment, the excitement for buying cheap Bitcoin is waning as the price hovers around $60,000. This fading enthusiasm could indicate that Bitcoin is approaching a bottom.
Historical Patterns
Historically, when Bitcoin crashes from all-time highs, sentiment becomes very negative. However, when “buy the dip” talk on social media starts to fade, it often signals that the bottom is near. This suggests that weak sellers have sold, and buyers are preparing to enter the market.
Other Indicators
Other factors also point to Bitcoin nearing its bottom:
- Key support levels on the chart haven’t broken down.
- Fundamentals remain strong.
- Bitcoin’s risk signal has printed a lower high, which is often a precursor to a bullish trend.
Cautions
It’s important to note that there’s no guarantee that prices have bottomed out until after the fact. However, the fading “buy the dip” sentiment and other indicators suggest that Bitcoin may be close.
Whale Activity
Interestingly, some new whale addresses have been accumulating Bitcoin silently. This suggests that large investors may be positioning themselves for a potential reversal.
