NEWSLETTER
bitcoin has been sliding down since reaching its all-time high in March. This has largely led to a buy-on-dip sentiment among cryptocurrency traders, with many believing that the correction would be over as soon as it was over and that bitcoin would once again hit new all-time highs.
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According to cryptanalysis platform Santiment, the excitement of acquiring “cheap” bitcoin appears to be fading as it consolidates. crawls around the price of 60,000 dollars. As Santiment noted, this fading buy-dip mentality could actually be a sign that bitcoin is approaching the bottombased on price history.
Is bitcoin at the bottom?
bitcoin fell from $63,000 to $60,000 on Friday, widening its trading range in recent weeks. As Santiment noted, traders are becoming less enthusiastic about buying the dip based on social media interactions.
While this may be worrying for some investors, bitcoin's unique price movement over the years has led Santiment to note that this is generally a good sign that the bottom is approaching.
To explain this in more detail, sentiment usually turns quite negative when bitcoin falls from all-time highs. But historically, the point at which the “buy the dip” talk on social media starts to fade is often a sign that the bottom is closer than most people realize.
The fading of the “buy the dip” narrative suggests that weak and scared bears have sold and bulls are starting to position themselves.
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Traders appear weak twitter.com/hashtag/buythedip?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#buythedip interest in twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoinThe latest setback has reached only $60.2 thousand today. Generally, the crowd's lack of faith is a strong sign that prices are close to a twitter.com/hashtag/bottom?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#below. Track social interest levels to see if twitter.com/hashtag/FUD?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#FUD remains high. https://t.co/cZjTWcCnL2 pic.twitter.com/Nj19XkIdgq
– Sentiment (@santimentfeed) twitter.com/santimentfeed/status/1788975787074519310?ref_src=twsrc%5Etfw” rel=”nofollow”>May 10, 2024
Unfortunately, there is no way to know for sure whether prices bottomed until after the fact. However, the key support levels on the bitcoin chart have not collapsed and the fundamentals have not changed. If bitcoin continues to hold above $60,000, this could indicate that it has bottomed.
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bitcoin is now trading at $60.991. Chart: TradingView
btc Risk Signal Hits Lower High – Woo
At the same time, the bitcoin-etfs/” target=”_blank” rel=”nofollow”>bitcoin Spot ETF Bullish Narrative
Other key factors also point to bitcoin is approaching its bottom. As noted by crypto analyst Willy Woo, bitcoin's risk signal x.com/woonomic/status/1789142054934884786″ target=”_blank” rel=”nofollow”>recently printed a lower highwhich is a formation that frequently paves the way for an uptrend.
At the time of writing, bitcoin is trading at $61,000 and is down 4.2% over the last seven days. Although bitcoin might have reached its lowest point, this calm action could continue for the next few months until the supply shortage from the halving is factored into its price.
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Surprisingly, some new whale addresses are quietly accumulating Bitcoins. in chain x.com/whale_alert/status/1789570541243756828″ target=”_blank” rel=”nofollow”>data from Whale Alerts shows the x.com/whale_alert/status/1789555546212757892″ target=”_blank” rel=”nofollow”>recent movement of 1,999 btc in new private addresses.
Featured image from Pexels, chart from TradingView
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