Crypto chatter about ‘buying the dip’ hits 8-month high: Santiment

As a seasoned crypto investor with a decade-long journey through the cryptoverse, I must say that the recent surge in social posts about buying the dip is a familiar sight. It reminds me of the time when Bitcoin was trading at $10,000 and everyone was convinced it would hit $20,000 within days, only to plunge below $3,000 soon after.

Recently, there’s been a significant increase in social media posts discussing the purchase of cryptocurrency dips, with this level being the highest since April. This surge comes as Bitcoin dropped below the psychologically important $100,000 price point, based on current data.

Today, with Bitcoin dropping to $95.5K, conversations surrounding cryptocurrencies buying at low points have peaked, reaching their highest level in more than 8 months, according to the analysis by crypto firm Santiment as stated in a recent blog post dated December 19th.

Highest social dominance score in 8 months

On December 19th, the Social Dominance Score related to phrases like “Buying the Dip” in social media platforms reached 0.061. This is because Bitcoin (BTC) had stayed under $100,000 for about 12 hours since the time when this data was being compiled.

Since the 12th of April, when Bitcoin’s price dipped below $70,000 to approximately $67,000 and then down to roughly $63,000 the next day, this is the highest social dominance score we’ve seen.

On August 4th, it came very close to matching that score again as Bitcoin plunged under $60,000 and continued to dip towards approximately $53,000 in the subsequent 24-hour period.

Over the last week, Bitcoin has been consistently near the $100,000 mark, and whenever it dips below that point, substantial sell-offs occur. Currently, it’s being traded at approximately $97,258.

Search interest for crypto remains high

Currently, it’s worth noting that while the search volume for “crypto” continues to be significant, there has been a decline in interest compared to early December levels.

Based on Google Trends analysis over the last 12 months, worldwide searches related to “cryptocurrency” have decreased slightly. Over the past week, the search volume stands at 75, which is a 25-point drop compared to the score of 100 that was recorded at the start of December.

In the last week, worldwide queries for “buying the dip” have peaked at a level of 38, which is the highest it’s been since August 10.

Charles Edwards, founder and analyst at Capriole Fund, stated in a recent post on December 19th, suggested market participants should prepare for potential market swings in either direction since even minimal triggers could lead to significant shifts in the market’s movement.

Edwards posits that there’s a reasonable chance the market might turn extremely bearish in the near future, which could lead to a reversal and potentially cause a short squeeze.

This piece is meant to provide a broad understanding and shouldn’t be construed as legal or financial guidance. The perspectives, ideas, and opinions within this text belong solely to the writer and may not align with those held by CryptoMoon.

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2024-12-20 08:58