Crypto data platform Santiment provides insight into the signals that may indicate the right time to accumulate Bitcoin (BTC) and altcoins.
Brian Quinlivan, Santiment Marketing Director say that crypto asset buying opportunities have historically presented themselves when trader sentiment has been neither pessimistic nor optimistic on the major social media platforms such as Reddit and X.
“When all four social platforms are aligned and settled back on neutral mentions of buying the dip, this is when the real opportunity has historically presented itself for patient traders…
Believe it or not, it’s a good sign that people are no longer convinced that this is a dip-buy spot. It means that pessimism is starting to take over again as market caps fade.”
According to Quinlivan, optimism in the crypto community was high immediately after Bitcoin fell close to $26,000 for the first time since June. But sentiment quickly changed.
“What happened after Bitcoin’s drop to $26,100, and the subsequent altco carnage?…
To begin with, it’s no surprise that we saw a huge increase in the number of ‘buy the dip’ listings. This indicates that the optimism among traders was quite high that a quick market recovery would come. But look at how wishful thinking has diminished significantly in recent days.”
On the level of discussion that Bitcoin and altcoins are currently dealing with, Santiment’s director of marketing says:
“We can also see that the percentage of discussions related to Bitcoin spiked to the highest level of the year at the end of the market crash. However, instead of BTC’s social dominance remaining high, it has quickly fallen back to relatively normal levels as traders seem to show some “greed” with regard to whatever the popular altcoins are at the moment.
We would actually like to see Bitcoin’s social dominance remain quite high, as this scenario is usually correlated with thriving and healthy crypto markets. High discussions about number one assets coincide with fear, while discussions about more speculative assets generally coincide with greed. Fear arises when markets rise.”
Bitcoin is trading at $26,033 at the time of writing.
Don’t miss a single beat – Subscribe to receive email alerts delivered straight to your inbox
Check price action
follow us on Twitter, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney