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- References to “buy the dip” on Reddit, X, 4chan, and BitcoinTalk have increased twofold in the past two days as Bitcoin reached lows not seen in several months.
References to “buy the dip” on social media platforms Reddit, X, 4chan, and Bitcoin Talk briefly doubled over the last two days as Bitcoin dropped below $60,000 for the second time in four months.
Crypto analytics firm Santiment monitored the total occurrences of the phrase across the four platforms as crypto traders discussed the current phase of the bull market for Bitcoin (BTC).
Frequency of “Buy the Dip” across four social platforms
“The public appears to be viewing this as a buy the dip moment,” Santiment noted in a post on X, adding:
“Ideally, we wait for their excitement to subside. The optimal time to buy is when they are anxious and doubtful.”
Bitcoin is currently priced at $58,900, reflecting a 4.2% decline over the past 24 hours, marking its lowest point since May 3, according to Coinstats data.
Bitcoin Price Chart | Source: Coinstats
Mt. Gox Is Still To Blame
Tom Lee, the founder of financial research firm Fundstrat, informed CNBC on July 1 that much of the recent negative sentiment is primarily stemming from Mt. Gox, which is set to release $9 billion worth of Bitcoin to its creditors later in July.
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Concerns have been raised that Bitcoin could decline if a substantial number of Mt. Gox’s 127,000 creditors decide to sell their recovered Bitcoin.
Lee is uncertain about when the market will hit its lowest point but maintains his forecast that Bitcoin could reach $150,000 by the end of 2024.
“[Mt. Gox] has been a significant overhang for many years [but knowing] that it will be resolved in July, I believe it’s a reason to anticipate a notable rebound in the latter half of the year.”
Another factor contributing to negative sentiment may be the spot Bitcoin exchange-traded funds, which have only recorded inflows in six of the last 18 trading days, according to Farside Investors data.
Not Everyone’s Confident The Bottom Is In
Kudret Ayyldr, research manager at GCM Investment, indicated that warning signs may be emerging now that Bitcoin has not managed to stay above $67,500 since April.
#Bitcoin Mayıs ve Haziranda $67,5K üzerinde kalıcı bir hareket oluşturamıyor ki iyi değil. Bu olumsuzluk $48- 50K dip bölgesine kadar düzeltmeyi konuşturabilir. Kısa vadeli olarak $58,75K kırılması ise bu düşünceyi güçlendirebilir. Aksi takdirde $58K -68 sıkışması izlenebilir. https://t.co/eEWLoOBtKY pic.twitter.com/lpIdRGXKWJ
— Kudret Ayyıldır
(@KudretAyyldr) July 3, 2024
(@KudretAyyldr) July 3, 2024“This negativity may lead to a correction towards the $48-50K bottom area,” Ayyldr projected in a July 3 X post to his 19,300 followers.
The Crypto Fear and Greed Index, which gauges market sentiment for Bitcoin and the wider cryptocurrency sector, is currently situated in the “Fear” zone with a score of 44 out of 100.
It dropped to an 18-month low of 31 on June 25 and has been fluctuating between 30 and 53 since then.
Crypto Fear and Greed Index score
