Mentions of “buy the dip” on social platforms Reddit, X, 4chan and Bitcoin Talk briefly doubled over the last two days as Bitcoin fell below $60,000 for the second time in four months.
Crypto research firm Santiment tracked the total mentions of the phrase across the four platforms as crypto traders debated what stage of the bull market Bitcoin (BTC) is currently in.
“The crowd is showing signs of seeing this as a buy the dip opportunity,” said Santiment in a post on X, adding:
“Ideally, we wait for their enthusiasm to settle down. The time to buy is when they are impatient and skeptical.”
Bitcoin is trading at $58,900 at the time of writing, down 4.2% over the last 24 hours, its lowest level since May 3, CoinGecko data shows.
Mt. Gox is still to blame
Tom Lee, founder of financial research firm Fundstrat, told CNBC on July 1 that much of the recent negative sentiment is largely coming from Mt. Gox preparing to offload $9 billion worth of Bitcoin to its creditors later in July.
Some are worried that Bitcoin could slump if a significant portion of Mt. Gox’s 127,000 creditors sell their recovered Bitcoin. Lee isn’t sure when the bottom will be in but stood by his prediction that Bitcoin can hit $150,000 before the end of 2024.
“[Mt. Gox] was a huge overhang for many years [but knowing] that is going to disappear in July, I think it’s a reason to expect a pretty sharp rebound in the second half.”
Another source of negative sentiment may have come from the spot Bitcoin exchange-traded funds, which have only seen inflows in six of the last 18 trading days, Farside Investors data shows.
Not everyone’s confident the bottom is in
Kudret Ayyldr, research manager at GCM Investment, suggested that alarm bells may be ringing now that Bitcoin has failed to hold above $67,500 since April.
“This negativity may prompt a correction to the $48-50K bottom area,” Ayyldr estimated in a July 3 X post to his 19,300 followers.
Related: Ethereum will outperform Bitcoin after ETF launch — K33 Research
The Crypto Fear and Greed Index, which measures market sentiment for Bitcoin and the broader cryptocurrency industry, is currently in the “Fear” zone with a score of 44 out of 100.
It fell to an 18-month low of 31 on June 25 and has been hovering between 30 and 53 ever since.
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