Is Now Actually the Time to Buy the Dip?
With Bitcoin at $26K, most definitely, the answer is a resounding YES.
Bitcoin “Buy The Dip” Mentality Disappears, Is Now Actually The Time To Buy?
“Back in March, when the asset had plunged below the $20,000 level, the indicator’s value had seen some spikes, but they were still at only moderate levels. When the price had recovered and had seen a sharp rally, however, that’s when the metric started to spike.
This would suggest that there was little enthusiasm in the market when the actual bottom formation was taking place, while the obstacles in the rally were being lauded as the time to buy.
A large amount of the spikes also occurred when that leg of the rally was topping out above the $28,000 level, meaning that the price went against the crowd mentality in this case.
Historically, Bitcoin has generally become more probable to move in the direction that the majority isn’t expecting, the more the majority predicts the other direction.
Since the social volume of these dip-related terms has remained low during the recent price decline, it appears that the investors are afraid of buying at the current levels.
‘We are seeing the common paradox of traders buying short-term, small crypto price dips, but scared to buy the longer-term bigger ones,” notes Santiment. “Historically, this kind of FUD has been good to capitalize on.’”