Bitcoin Traders Spread “Buy The Dip” As BTC Plunges Below $66,000

Keshav Verma

1 year ago

3 mins read

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Data shows “buy the dip” calls for Bitcoin have spiked around social media following the plummet the asset has seen below the $66,000 level.

Bitcoin Social Volume For Terms Related To Buy The Dip Has Shot Up

According to data from the analytics firm Santiment, Bitcoin investors have more heavily reacted with bullish calls than bearish ones despite the sharp decline the asset has observed.

The indicator of relevance here is the “Social Volume,” which tells us about the amount of discussion a given topic or term is receiving on the major social media platforms right now.

This metric works by going through the various posts/threads/messages on these websites to check for mentions of the topic. The indicator, however, doesn’t outright count up these mentions but rather the number of posts that contain at least one mention.

This is naturally due to the fact that a high mention count alone can’t be a reliable indication of whether social media users as a whole are talking about the topic, since talk being limited to just a few threads can also lead to a spike in this count.

In the context of the current discussion, Santiment has filtered the Social Volume for bullish and bearish keywords to find how the two sentiments compare currently.

The below chart shows the trend in the metric for these terms since the start of the year 2024:

The value of the metric appears to have been quite high in recent days | Source: Santiment on X

For pinpointing bullish sentiment, the analytics firm has made use of terms such as “buy” or “bullish.” Similarly, “sell” or “bearish” are among the keywords for the opposite sentiment.

From the graph, it’s visible that the Social Volume for the former type of terms has exploded following the latest plunge in the Bitcoin price, suggesting that social media users are looking at the drawdown as an opportunity to buy more.

The bearish Social Volume has also seen an uplift, but its peak has only been half as high as one of the bullish terms. While the investors being bullish may sound optimistic at first, the fact is that this has actually not been ideal for rebounds to take place in the past.

As Santiment notes:

Historically, the best dip buy opportunities occur when the crowd consensus is showing a bit of fear toward a further drop. This usually results in small wallets dropping their bags for whales and sharks to scoop them up.

As such, the current market enthusiasm may actually be counterproductive for the chances of a bottom to form. According to the analytics firm, the real “buy the dip” for Bitcoin opportunity may present itself once the red sentiment has caught up to the blue one.

BTC Price

At the time of writing, Bitcoin is floating around $65,700, down more than 7% in the past week.

Looks like the price of the asset has registered a sharp drop over the past day | Source: BTCUSD on TradingView

Featured image from Maxim Hopman on Unsplash.com, Santiment.net, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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