The crypto market’s violent downtrend left many hoping for a quick rebound, as evidenced by a huge rise in “buy the dip” mentions across several social media channels. However, this “wishful thinking” has died down, with top assets such as Bitcoin still hovering in the bearish territory with no near-term signs of a reversal.
According to Santiment’s latest insight, it’s a good sign that people are no longer certain that this is a dip-buying spot. It means that pessimism is beginning to take over again as market caps fade.
When Actual Opportunity?
The market is still reeling from Bitcoin’s plunge to $25.3K and the subsequent altcoin bloodbath. Most top 20 crypto-assets have posted double-digit losses over the past week. What followed soon was the anticipation of a quick market recovery.
Santiment observed that Reddit stands out as a dominant social media platform with the highest consensus of “buy the dip” mentions. After a minor upsurge, Twitter (X) reverted to a neutral stance. A similar trend was seen across 4chan and Telegram as well.
Historically, the opportune moment for “patient traders” emerges when all four social media platforms align and return to their neutral mentions of “buy the dip.”
The crypto analytic platform further stated that there was a notable surge in the percentage of discussions related to Bitcoin, which spiked to its highest level of the year on the tail end of the market crash.
But rather than the BTC social dominance staying high, it swiftly dropped back down to relatively normal levels. This shift occurred as traders exhibited “greed” about “whatever the hot altcoins on the block” are currently.
‘Fear is When Markets Rise’
Santiment noted that Bitcoin’s social dominance needs to remain elevated, as this tends to correlate with “thriving and healthy” crypto markets.
An increased discourse around the primary asset is often linked with “fear,” whereas conversations concerning more speculative assets are usually associated with heightened “greed.” It’s worth noting that market upswings often occur during periods of fear, according to the platform’s findings.
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