Crypto ‘buy the dip’ calls are spiking, which may signal more downside

The rising fig of “buy the dip” calls pursuing Bitcoin’s 5% driblet implicit the past week could awesome much downside up for the crypto market, according to sentiment level Santiment.

“Clearly, overall, successful the markets, radical are getting antsy and trying to find immoderate introduction spots present that prices person cooled down a bit,” Santiment expert Brian Quinlivan said successful a video published connected YouTube connected Saturday.

Santiment said successful a abstracted study published connected the aforesaid time that societal media mentions of “buy the dip” person accrued importantly amid the crypto marketplace downturn, which whitethorn beryllium a informing motion for the market.

Source: Michaël van de Poppe

“Don’t construe ‘buy the dip’ chatter arsenic a definitive bottommost signal. A existent marketplace level often coincides with wide fearfulness and a deficiency of involvement successful buying,” Santiment said.

“A existent bottommost often forms erstwhile the assemblage loses anticipation and becomes acrophobic to buy,” Santiment added.

Sentiment is recovering arsenic traders expect altcoin play

The full crypto marketplace capitalization is $3.79 trillion astatine the clip of publication, down astir 6.18% implicit the past 7 days, according to CoinMarketCap.

Meanwhile, Bitcoin (BTC) is trading astatine $108,748 astatine the clip of publication, down astir 5% implicit the aforesaid period. On Aug. 14, Bitcoin reached caller a caller precocious of $124,128.

It’s often echoed among crypto analysts that prices move other to what retail traders expect, and past shows that erstwhile much radical deliberation the marketplace has reached a bottom, it tin really awesome further downside.

The Crypto Fear & Greed Index fell into “Fear” territory connected Saturday. Source: alternative.me

Market sentiment is dilatory recovering, with the Crypto Fear & Greed Index climbing backmost to “Neutral” astatine 48 retired of 100 connected Sunday, aft dipping into “Fear” astatine 39 retired of 100 the erstwhile day.

Some traders are speculating that the crypto market’s pullback from Bitcoin’s caller highs could beryllium a motion that the long-awaited altcoin play is approaching.

“Mega altseason” whitethorn beryllium approaching, says trader

Crypto trader Ash Crypto pointed retired successful an X station connected the aforesaid time that “Altcoins are present the astir oversold ever.”

“Even during the Covid crash, FTX illness oregon tariff wars, they weren’t this oversold,” the trader said, suggesting it could beryllium a motion of a “mega altseason” akin to the large rallies of 2017 and 2021.

Related: ‘No question Bitcoin hits $1M’ — Eric Trump astatine BTC Asia 2025

On Thursday, CoinMarketCap’s Altcoin Season Index shifted from “Bitcoin Season” to “Altcoin Season,” reaching a people of 60 retired of 100 astatine the clip of publication.

Meanwhile, crypto trader Ak47 said, with a “possible Fed complaint chopped and altcoin ETF support this fall, the adjacent rally could beryllium huge.” 

CME’s FedWatch Tool shows marketplace participants spot an 86.4% accidental of the US Federal Reserve cutting involvement rates for the archetypal clip this twelvemonth successful September, which is typically seen arsenic a bullish awesome for crypto arsenic investors look for higher returns successful riskier assets.

Magazine: The 1 happening these 6 planetary crypto hubs each person successful common…