Bitcoin has It was slid down Since it reached an all-time high last March. This has largely led to dip-buying sentiment among cryptocurrency traders, with many believing that the correction will end once it is over and Bitcoin will rise back to its all-time highs.
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According to cryptocurrency analytics platform Santiment, the excitement of getting “cheap” Bitcoin appears to be fading as the consolidation process continues. It extends around Price tag is $60,000. As Santiment pointed out, this buy-the-dip mentality could actually be a signal that Bitcoin is as well Approaching the bottomAccording to price history.
Has Bitcoin hit bottom?
Bitcoin fell from $63,000 to $60,000 on Friday, expanding its trading range in the past few weeks. As Santiment noted, traders have become less enthusiastic about buying the dip based on social media interactions.
While this may be worrying to some investors, Bitcoin's unique price action over the years has led Santiment to note that this is generally a good sign that a bottom is approaching.
To explain this further, sentiment usually turns completely negative when Bitcoin collapses from all-time highs. But historically, the point at which talk of “buying the dip” starts to die down on social media is often a sign that the bottom is closer than most people think.
The dull talk of “buying the dip” suggests that weak and fearful bears have sold off and the bulls are starting to position themselves.
🤔 Traders show weakness #buythip Interested in #BitcoinThe latest decline was to $60.2K today. In general, public lack of confidence is a strong sign that prices are approaching a level #bottom. Track your social interest levels to see if… #FUD It stays high. https://t.co/cZjTWcCnL2 pic.twitter.com/Nj19XkIdgq
— Santiment (@santimentfeed) May 10, 2024
Unfortunately, there is no way to know if prices have 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 the $60,000 level, this could indicate that the bottom has been reached.
Bitcoin is now trading at $60.991. Chart: TradingView
BTC Risk Signal Hits Low – Woo
at the same time, The Bullish Bitcoin ETF Narrative The drive for increased mainstream adoption is still there, meaning that cryptocurrencies could reverse into a full-fledged bullish move very soon.
Other key factors are also indicated Bitcoin is approaching the bottom. As cryptocurrency analyst Willie Wu pointed out, the risk signal for Bitcoin Recently printed lower altitudeIt is a formation that often paves the way for an uptrend.
At the time of writing, Bitcoin is trading at $61,000 and is down 4.2% in the past seven days. Although Bitcoin may have bottomed, this calm may continue for the next few months until the massive halving supply is factored into its price.
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Interestingly, some new whale addresses are silently accumulating Bitcoins. On the chain Data Of whale alerts appears The last movement From 1,999 BTC to new private addresses.
Featured image from Pexels, chart from TradingView
