Mentions of “Buy the dip” on social platforms Reddit, X, 4chan and Bitcoin Talk have doubled in the past two days as Bitcoin fell below $60,000 for the second time in four months.
Cryptocurrency research firm Santiment tracked the total number of mentions of the phrase across four platforms as traders debated which phase of the bull market Bitcoin is currently in.
“The crowd is showing this is a buying opportunity on the dip. Ideally, wait until the enthusiasm dies down. The time to buy is when they lose patience and skepticism.
Frequency of “Buy the dip” appearing on four social platforms. Source: Santiment
Bitcoin is trading at $57,561 at the time of writing, down 4% over the past 24 hours, hitting its lowest level since May 3.
BTC 1-hour price chart. Source: TradingView
Mt. Gox Still Liable
Tom Lee, founder of financial research firm Fundstrat, said on July 1 that much of the recent negative sentiment stems largely from Mt. Gox preparing to repay $9 billion in Bitcoin to creditors by the end of July.
Some fear that Bitcoin could crash if a significant portion of the 127,000 Mt. Gox creditors sell their repaid Bitcoins. Lee is unsure when the price will bottom but maintains his prediction that Bitcoin could hit $150,000 by the end of 2024.
“Mt. Gox has been a huge liability for years, but knowing it’s going to go away in July, I think that’s reason to expect a pretty strong recovery in the second half of the year.”
Another source of negative sentiment could come from spot Bitcoin ETFs, which have seen just six days of inflows in the last 18 trading days.
Not everyone is confident that the bottom is there.
Kudret Ayyildir, director of research at GCM Investment, said that alarm bells may be ringing as Bitcoin has failed to hold above $67,500 since April.
“This negativity could cause a correction to the $48-50,000 bottom zone.”
Source: X
The Crypto Fear and Greed Index, a gauge of market sentiment towards Bitcoin and the cryptocurrency industry in general, is currently in the “Fear” zone with a score of 44 out of 100.
The index fell to an 18-month low of 31 on June 25 and has fluctuated between 30 and 53 since then.
Itadori
According to FXStreet
