‘Buy the Dip’ Interest Spikes, but Santiment Predicts More Pain Ahead

Crypto merchants are exhibiting peak confidence in shopping for the newest market dip, but Santiment information suggests this optimism could also be a prelude to extra worth drops.

According to the on-chain analytics platform, discussions about “buying the dip” have reached their highest stage in seven months, pushed by Bitcoin’s plunge under $80,000.

Looking for a True Bottom

Santiment’s evaluation revealed a pointy improve in mentions of “buying the dip” throughout platforms like X, Reddit, Telegram, and BitcoinDiscuss, which all have thriving crypto communities.

The sentiment tracker recorded its highest stage of dip-buying discussions between February 25 and February 26, coinciding with a 27% drop in BTC’s worth.

However, specialists have urged warning. According to the analytics agency, markets have traditionally moved towards crowd expectations. It signifies that an actual restoration might solely start when dip-buying sentiment cools down, which might point out that enthusiasm amongst retail merchants has largely pale.

Therefore, the platform suggested ready for the neighborhood’s optimism to die down earlier than contemplating a market entry, as that may sign a real shopping for alternative.

Further exacerbating the scenario, the Bitcoin Fear & Greed Index just lately plunged to 10, its lowest studying since June 2022, indicating excessive worry amongst traders.

While in the previous, such lows often got here earlier than a market restoration, some analysts, together with BitMEX co-founder Arthur Hayes, have warned that the primary cryptocurrency may drop to the $70,000 stage earlier than stabilizing.

In a current submit on X, the crypto investor predicted BTC’s fall under $80,000, suggesting it might occur over the weekend of February 28. “I think we have one more violent wave down below $80k, most likely over the weekend, then crickets for a while,” the Maelstrom CIO famous.

Market Turmoil Continues

At the time of this writing, the broader crypto market had hemorrhaged practically 9% of its capitalization in the final 24 hours. Bitcoin is down 7.4% in the similar interval and has shed greater than 19% from its worth over the previous seven days.

Solana, XRP, and Ethereum fared worse at the moment. SOL is down 27% over one week, XRP has dipped by greater than 24%, whereas ETH misplaced 23.1% of its worth.

Many causes have been put ahead to elucidate this decline, with some observers pointing at macroeconomic issues, together with U.S. President Donald Trump’s tariff announcement on Canada, Mexico, and China, in addition to his risk to take related measures towards the European Union.

As merchants navigate this turbulent market, one factor is evident: extreme optimism won’t be the bullish sign they could have hoped for.