The rising variety of “purchase the dip” calls on social media following Bitcoin’s 5% drop over the previous week might sign extra draw back forward for the crypto market, sentiment platform Santiment says.
“Clearly, total, within the markets, individuals are getting antsy and looking for some entry spots now that costs have cooled down a bit,” Santiment analyst Brian Quinlivan stated in a video printed on YouTube on Saturday.
Santiment stated in a separate report printed on the identical day that social media mentions of “purchase the dip” have elevated considerably amid the crypto market downturn, which can be a warning signal for the market.
“Don’t interpret ‘purchase the dip’ chatter as a definitive backside sign. A real market flooring typically coincides with widespread concern and a scarcity of curiosity in shopping for,” Santiment stated.
“An actual backside typically kinds when the group loses hope and turns into afraid to purchase,” Santiment added.
Sentiment is recovering as merchants anticipate altcoin season
The complete crypto market capitalization is $3.79 trillion on the time of publication, down roughly 6.18% over the previous seven days, in accordance to CoinMarketCap.
Meanwhile, Bitcoin (BTC) is buying and selling at $108,748 on the time of publication, down roughly 5% over the identical interval. On Aug. 14, Bitcoin reached new a brand new excessive of $124,128.
It’s typically echoed amongst crypto analysts that costs transfer reverse to what retail merchants anticipate, and historical past means that when extra folks suppose the market has reached a backside, it may well truly sign additional draw back.
Market sentiment is slowly recovering, with the Crypto Fear & Greed Index climbing again to a “Neutral” rating of 48 out of 100 on Sunday, after dipping into “Fear” at 39 out of 100 the day prior to this.
Some merchants are speculating that the crypto market’s pullback from Bitcoin’s current highs might be an indication that the long-awaited altcoin season is approaching.
“Mega altseason” could also be approaching, says dealer
Crypto dealer Ash Crypto pointed out in an X put up on the identical day that “Altcoins at the moment are essentially the most oversold ever.”
“Even throughout the Covid crash, FTX collapse or tariff wars, they weren’t this oversold,” the dealer stated, suggesting it might be an indication of a “mega altseason” just like the massive rallies of 2017 and 2021.
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On Thursday, CoinMarketCap’s Altcoin Season Index shifted from “Bitcoin Season” to “Altcoin Season,” reaching a rating of 60 out of 100 on the time of publication.
Meanwhile, crypto dealer Ak47 stated, with a “potential Fed charge lower and altcoin ETF approval this fall, the following rally might be enormous.”
CME’s FedWatch Tool exhibits market individuals see an 86.4% probability of the US Federal Reserve chopping rates of interest for the primary time this 12 months in September, which is usually seen as a bullish sign for crypto as traders search for greater returns in riskier belongings.
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