Social media remains hopeful in buying the dip
Bitcoin has continued in red experiencing a marginal decrease over the last 24 hours following a sudden slump to the $26,000 levels some days ago.
The price had been stuck in the $29,000 to $30,000 range over the past few weeks before the crash.
Is Bitcoin dip worth buying?
As the market grapples with the bearish grip on the price, the current sentiment in the market is mixed with new data showing investors are disillusioned, yet hopeful.
According to new data from data analytics firm Santiment, investor sentiment has shifted since the crash a few days back.
Firstly, Santiment looked at the amount of “buy the dip” calls on social media recently. The result showed that investors were hopeful.
The firm used its “social media” metric, which finds social media posts mentioning terms like “buy” and “dip.” From the chart, there were calls for investors and market tourists to buy the dip just around when Bitcoin fell to the $26,000 level.
This showed that investors were optimistic that BTC would quickly recover and that the fall was merely a setback and a buying opportunity.
But as the benchmark crypto continues to trade sideways, it appears that buy the dip calls on social media have slowly dwindled.
“Believe it or not, it’s a good sign that people are no longer certain that this is a dip buy spot,” explains the analytics firm. “It means that pessimism is beginning to take over again as market caps fade.”
As the general market slowly retraces their enthusiasm, social volume broken shows that Redditors remain stubborn in their hope of reversal.
Read more: Glassnode: Bitcoin at historically low levels of volatility
Social dominance drops to normal level
The “social dominance” of Bitcoin isn’t that positive. The percentage share of the total social volume of Bitcoin among the top 100 assets has dropped to normal levels.
This means that social media posts about altcoin are still rampants, inferring that greed is still in the market.
“High discussion related to the #1 asset coincides with fear, whereas discussions about more speculative assets tends to coincide with greed,” says the analytics firm. “Fear is when markets rise.”
Overall, it seems like market sentiment is shifting in the right direction, but it hasn’t quite reached a point where it would be advantageous historically for a Bitcoin recovery to take place.
At press time, Bitcoin exchanged hands at $25,908, losing 0.8% of its value over the last 24 hours.
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