Santiment analytics platform revealed that social media mentions of crypto dip buying had rocketed to their highest level since last July amid the market downturn. The platform also argued that the surge in social media mentions of crypto didn’t necessarily mean it was time to buy digital assets.
The crypto analysis platform maintainedthat prices move in the opposite direction of the crowd’s expectations. Retail traders have been increasingly talking about buying crypto dips over the past couple of days, but the market has continued to see the markets bleed.
Crypto traders increase talks of “buying the dip” on social media
🤷 Traders are showing a very high level of confidence that this dip is ‘the one to buy’, according to the spike in discussions across X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster. Ideally, we are waiting for this crowd enthusiasm to die down as a signal that enough… pic.twitter.com/nM99sLw4v3
Santiment pointed out that social media mentions of crypto “buy the dip” rose to their highest level since July 2024. Social media mentions of “buying the dip” rose, but the hype did not necessarily reflect in the market. The platform urged people to “look for declining optimism and shrinking levels of buy-the-dip calls as a bullish signal.”
“Traders are showing a very high level of confidence that this dip is the one to buy’, according to the spike in discussions across X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster.”
– Santiment
The social analytics platform also added that waiting for the crowd’s enthusiasm to die down was prudent and could be interpreted as a signal that enough pain had hit retail traders. Santiment believes that a cooling off of crowd enthusiasm will justify a bounce in the market.
Crypto dip buy hype has been at its highest level since last July | Source: Santiment
The market analytics platform also clarified that Bitcoin prices were closely correlated with the behavior of whales and sharks over the long-term (especially wallets with 10+ BTC). Since last week, whales and sharks have dumped ~6,813 digital assets, the largest drop since last July. Santiment urged people to look for accumulation from these large stakeholders as a signal that market-wide prices are about to move back in the positive direction.
The firm also noted several coinswith the increased whale activity, including MakerDAO, MATIC, Floki Inu, Usual, Quant Network, Render Network, USDC, Uniswap, Aave, and Wrapped Bitcoin.
The market data platform argued that the stablecoins on the aforementioned list signaled that Whales were preparing to make other token purchases sooner. For other assets, it signaled that key stakeholders were accumulating them and seeing them “as a good opportunity to purchase at a heavy discount.”
The firm acknowledged that the market will bounce as soon as retailers are no longer interested in dip buying. On February 26, Santiment said the crowd narrative quickly switched to bearish, and several signals indicated a bounce was justified due to FUD and whale confidence.
The financial content platform also notedon February 25 that the community’s sentiment levels fell to rock bottom after BTC, ETH, XRP, and SOL showed extreme crowd bearishness. The firm argued that when notably high FUD and trader capitulation began to trickle at extreme bearish levels, the cryptocurrency bottom was near.
Santiment believes that traders can do well by recognizing viral people
Santiment also acknowledgedthat 8 individuals had key discussions about them in relation to crypto markets throughout the past year. The company noted that negative news about Trump hurt markets, while positive news boosted markets. Increased Elon Musk discussions slightly boosted markets, especially when memecoins are rallying.
News about Changpeng Zhao was mostly met with crypto bounces due to the mostly positive community perception. Jerome Powell and the U.S. Fed interest rate cuts also caused dramatic market rises. The analysis platform uncovered that unchanged rates lead to a slight decline in the market, while a hike in rates caused a dramatic market drop.
The firm argued that traders can make the most informed decisions when they recognize which people go viral during any given week. The market analysis platform noted that key topics in the crypto industry included Bitcoin price predictions and market manipulation. There were also talks about Bitcoin dominance potentially gearing up for a dip and rip, impacting altcoins.
Santiment also highlighted discussions about analyzing Bitcoin’s trading signals and strategies, with mentions of setting up trades based on technical analysis and market trends. There were also discussions about emerging projects in the crypto space and anticipation for an alt season as BTC’s price hovered below $100K.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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