Crypto ‘Buy the Dip’ Hype Rises, But More Losses May Follow - Cryptured.com

Following Bitcoin’s 5% drop over the previous week, there have been an increasing amount of “buy the dip” requests on social media, which sentiment site Santiment says could indicate further declines for the cryptocurrency market.

In a video posted on YouTube on Saturday, Santiment analyst Brian Quinlivan stated that while prices have somewhat cooled, it is evident that people are becoming restless and looking for opportunities to enter the market.

During the crypto market drop, Santiment stated in a separate analysis on that same day that social media mentions of “buy the dip” have surged significantly, which could be a danger indicator for the market.

Never take talk of a “buy the dip” as a clear indication of a bottom. According to Santiment, widespread apprehension and a lack of desire to purchase frequently accompany a true market floor.

When people lose hope and are scared to buy, a real bottom frequently occurs, Santiment continued.

Market Sentiment Recovers as Traders Await Altcoin Rally

As of this writing, CoinMarketCap estimates that the total cryptocurrency market capitalization is $3.79 trillion, down roughly 6.18% over the previous seven days.

The price of Bitcoin, which was $110,225 at the time of writing, is currently down almost 5% to $108,748. The price of Bitcoin hit a record high of $124,128 on August 14.

Crypto analysts frequently agree that prices move against the expectations of individual traders, and history indicates that when more individuals believe the market has hit a bottom, it may really be a portent of future declines.

After plunging into “Fear” at 39 out of 100 the day before, the Crypto Fear & Greed Index returned to a “Neutral” score of 48 out of 100 on Sunday, indicating that market mood is gradually improving.

According to some traders, the cryptocurrency market’s decline from Bitcoin’s most recent highs may indicate the arrival of the much-anticipated altcoin season.

‘Mega Altseason’ Might Be Approaching, Says Analyst

In an X post that same day, cryptocurrency trader Ash Crypto said that altcoins are the most oversold ever.

They weren’t this oversold even during the Covid crisis, the FTX collapse, or tariff conflicts, the trader claimed, speculating that it might be an indication of a “mega altseason” akin to the significant rallies of 2017 and 2021.

“Bitcoin Season” gave way to “Altcoin Season” on Thursday, according to CoinMarketCap’s Altcoin Season Index, which at the time of writing had a score of 60 out of 100.

According to cryptocurrency trader Ak47, the next rise might be enormous given a potential Fed rate decrease and the introduction of altcoin ETFs this fall.

Market participants believe there is an 86.4% possibility that the US Federal Reserve will lower interest rates in September for the first time this year, according to CME’s FedWatch Tool. This is usually interpreted as a bullish signal for cryptocurrencies as investors seek riskier assets with better yields.