"Buy The Dip" Mentions Surge As Bitcoin Falls Below $60,000

References to “buy the dip” on Reddit, X, 4chan, and Bitcoin Talk suddenly quadrupled over the last two days when Bitcoin sank below $60,000 for the second time in four months.

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Social Media Mood and Market Response

Tracking the total usage of the term across the four platforms, crypto research company Santiment noted that traders of cryptocurrencies are discussing the present level of the bull market for Bitcoin. Santiment wrote in an X post, “The crowd is showing signs of seeing this as a buy the dip opportunity” adding, “ideally, we wait for their enthusiasm to settle down.” Their impatience and mistrust define the moment to purchase.

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Based to CoinGecko statistics, Bitcoin is trading at $58,900 right now, down 4.2% over the last 24 hours, lowest level since May 3.

Elements Affecting the Fall in Bitcoin

Fundstrat’s founder, Tom Lee, told CNBC on July 1 that Mt. Gox’s readiness to transfer $9 billion worth of Bitcoin to its creditors later this month is mostly responsible for the current bad attitude. Should a sizable fraction of Mt. Gox’s 127,000 creditors sell their recovered Bitcoin, some fear that Bitcoin may fall. Lee, on the other hand, supports his estimate that Bitcoin may reach $150,000 before 2024 ends. ” [Mt. Gox] was a huge overhang for many years [but knowing] that is going to disappear in July, I think it’s a reason to expect a pretty sharp rebound in the second half,” Lee said.

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Based on Farside Investors statistics, another cause of negative sentiment might be the spot Bitcoin exchange-traded funds (ETFs), which have only had inflows in six of the previous eighteen trading days. Research Manager at GCM Investment Kudret Ayyldr said that because Bitcoin has fallen short of $67,500 since April, warning bells may be ringing immediately. “This negativity may prompt a correction to the $48-50K bottom area,” Ayyldr projected in a July 3 X post to his 19,300 following.

With a score of 44 out of 100, the Crypto Fear and Greed Index—which gauges market attitude for Bitcoin and the larger cryptocurrency sector—is now in the “Fear” zone. It dropped to 31 on June 25, and has been fluctuating between 30 and 53 ever since. It is an 18-month low.

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