Rumors that the SEC will delay spot Bitcoin ETF approvals caused a sharp decline in Bitcoin and altcoins.
As BTC fell below $41,000, “Buy the Dip” conversations began to increase among investors on social media.
According to Coindesk, data obtained from Santiment revealed that “buying the bottom” conversations increased on social media after the sharp decline in BTC.
Santiment’s Social Trend indicator tracks conversations on Telegram, Reddit, X, and 4Chan to identify top trending keywords or topics.
Accordingly, after yesterday’s decline, “buying the dip” conversations have reached their highest level since March 2022.
The number of “Buy the dip” conversations on social media platforms increased to 323, the highest number since March 25, 2022, according to data from Santiment.
It was noted that this sudden increase in Diten purchase conversations occurred after the Bitcoin price suddenly dropped to $ 41,000.
As is known, talk of buying the dip is one of the most well-known narratives in the community, indicating investors’ intention to buy more cryptocurrencies when the price drops.
At this point, analysts commenting on the increase in the number of “buying the bottom/descent” conversations stated that although the increase in these conversations points to an upward trend, it also historically points to deeper price retreats.
Because the increase in these conversations means that investors are willing to buy at the bottom and there is FOMO.
Citing 2021 bull market data, analysts said that throughout the 2021 rally, spikes in bottom-buying talk coincided with declines in price.
“Historical data shows that price pullbacks or downtrends usually end when the number of buy-the-dip conversations in the community begin to trend downward.”
*This is not investment advice.
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Source: https://en.bitcoinsistemi.com/santiment-after-the-fall-in-bitcoin-buy-the-dip-talks-are-on-the-rise-what-does-historical-data-point-to-for-btc/