[2023-08-22] Coinotag - Did the Recent Bitcoin Drop Create a Buying Opportunity?

[coinotag]

• In a recent insight post, on-chain analytics firm Santiment highlighted how trader sentiment in the BTC sector has changed since the recent crash.
  
• It can be seen that social media users engaged in intense discussions on such topics when Bitcoin experienced a crash towards the $26,000 level a few days ago.
  
• Historically, the formation of a bottom has become more likely based on how pessimistic the majority of traders are towards the market. Therefore, this development could potentially allow for the recovery of the cryptocurrency.
  

Current social media metrics in Bitcoin reveal that the community has not lost hope and that “buying the dip” calls are significant.

Is the Drop in Bitcoin an Opportunity?

The sentiment among current Bitcoin investors could hold the key to understanding whether the current drop is a buying opportunity. On-chain analytics firm Santiment highlighted how trader sentiment in the BTC sector has changed since the recent crash.

Firstly, the analytics firm examined the prevalence of “buy the dip” calls on social media in recent times.

Here, Santiment used the measure of “social volume,” which finds the number of unique social media posts mentioning a specific term or topic.

Of course, in this case, Bitcoin/crypto social volume was taken and then filtered for terms like “buy” and “dip.” From the chart, it can be seen that social media users engaged in intense discussions on such topics when Bitcoin experienced a crash towards the $26,000 level a few days ago.

This indicates that traders were optimistic about a rapid recovery of the asset and believed the drop presented an ideal buying opportunity. However, as the asset continued to move sideways since the crash, the optimism on social media seems to have gradually faded, and “buy the dip” calls appear to have decreased. Nevertheless, Santiment states that this is not necessarily bad news.

Historically, the formation of a bottom has become more likely based on how pessimistic the majority of traders are towards the market. Therefore, this development could potentially allow for the recovery of the cryptocurrency. In terms of social volume spread across major social media platforms, it can be seen that Reddit users still do not expect a reversal.

https://en.coinotag.com/did-the-recent-bitcoin-drop-create-a-buying-opportunity/

[Kakmakr]

Well, people are not just talking about buying on the dip, they are also making bets on where the Bitcoin price will be in the near future. https://cointelegraph.com/news/adam-back-bitcoin-price-bet-all-time-high-halving <=== he is pretty confident Bitcoin will hit an all-time high of over $100,000 before Bitcoin's halving in 2024.

So, if his prediction is true, then buying at $26 000 now, will give people a significant profit in 2024..... but time will tell if he is right or wrong. 

[cr1776]

Of course it did create a buying opportunity.  The halving, potentially an ETF sometime in the next 5-7 years (hopefully sooner), rising socialism/fascism/communism and control around the world, censorship, not to mention other use cases, are all catalysts for increasing demand.