The surge in “buy the dip” calls across social media following the recent pullback in Bitcoin price may not signal a market bottom but rather more potential downside, according to sentiment analytics platform Santiment. The warning comes as Bitcoin fell around 5% over the past week, sparking renewed debate among traders about whether the correction is a buying opportunity or a precursor to deeper losses. “Clearly, overall, in the markets, people are getting antsy and trying to find some entry spots now that prices have cooled down a bit,” Santiment analyst Brian Quinlivan said in a video published Saturday. In a separate report , the firm stressed that social media enthusiasm around dip-buying often contrasts with true bottoms, which typically form when fear dominates and buyers retreat. Bitcoin Market Sentiment Remains Fragile At the time of writing, Bitcoin is trading at $108,748, down about 5% from the previous week. The total cryptocurrency market capitalization has slipped to $3.79 trillion, reflecting over 6% decline over seven days. Just two weeks earlier, Bitcoin had set a new record high of $124,128 on August 14. Despite the pullback, the broader mood among traders has begun to stabilize. The Crypto Fear & Greed Index, which briefly dipped into “Fear” territory at 39 out of 100, rebounded on Sunday to a “Neutral” score of 48. Analysts caution, however, that market psychology often moves in the opposite direction of retail expectations. Historically, strong consensus that a bottom has formed has often preceded further corrections rather than recoveries. Altcoin Season Speculation Grows While some remain cautious, others see opportunity in the downturn. Prominent trader Ash Crypto noted that altcoins are “the most oversold ever,” even more so than during the Covid crash, the FTX collapse, or earlier tariff war market shocks. The trader suggested this may set the stage for a “mega altseason,” akin to the explosive rallies seen in 2017 and 2021. Supporting this view, CoinMarketCap’s Altcoin Season Index shifted last Thursday from “Bitcoin Season” to “Altcoin Season,” registering a score of 60 out of 100. Another trader, known as Ak47, argued that with a potential Federal Reserve rate cut in September and the possibility of altcoin ETF approvals, conditions are aligning for a significant rally. According to CME’s FedWatch Tool, markets currently price in an 86.4% probability that the Fed will cut rates next month — a move often seen as bullish for risk assets like cryptocurrencies. The post Rising ‘Buy the Dip’ Chatter Sparks Caution in Bitcoin Market appeared first on TheCoinrise.com .
