The increasing surge of “buy the dip” suggestions after Bitcoin’s 5% decline over the past week may indicate further decline for the crypto market, as noted by sentiment platform Santiment.
“Clearly, overall, in the markets, people are getting anxious and looking for some entry points now that prices have cooled a bit,” said Santiment analyst Brian Quinlivan in a YouTube video released on Saturday.
Santiment mentioned in a different report that social media discussions about “buy the dip” have notably risen during the crypto market slump, which could serve as a cautionary signal for investors.
“Do not view the ‘buy the dip’ discussions as a sure signal that the market has bottomed. A genuine market floor usually coincides with notable fear and little interest in purchasing,” Santiment advised.
“A true bottom is often reached when the crowd gives up hope and hesitates to buy,” Santiment added.
Sentiment is recovering as traders expect an altcoin season
The overall crypto market capitalization stands at $3.79 trillion at the time of this report, reflecting a decline of about 6.18% over the last week, according to CoinMarketCap.
Bitcoin (BTC) is currently traded at $108,748, down roughly 5% in the same timeframe. On August 14, Bitcoin peaked at a new high of $124,128.
It is often echoed among crypto analysts that prices tend to move contrary to the expectations of retail traders, and historical patterns show that an influx of people believing the market has bottomed can signal additional decline.
Market sentiment is gradually improving, with the Crypto Fear & Greed Index rising to “Neutral” at 48 out of 100 on Sunday, after falling to “Fear” at 39 out of 100 the day before.
Some traders are speculating that the crypto market’s retreat from Bitcoin’s recent peaks could signal the imminent arrival of the anticipated altcoin season.
“Mega altseason” may be on the horizon, says trader
Crypto trader Ash Crypto noted in an X post on the same day that “Altcoins are currently the most oversold ever.”
“Not even during the Covid crash, FTX collapse, or tariff disputes were they this oversold,” the trader remarked, suggesting a potential for a “mega altseason” reminiscent of the significant rallies seen in 2017 and 2021.
Related: ‘No question Bitcoin hits $1M’ — Eric Trump at BTC Asia 2025
On Thursday, CoinMarketCap’s Altcoin Season Index transitioned from “Bitcoin Season” to “Altcoin Season,” achieving a score of 60 out of 100 at the time of this report.
Additionally, crypto trader Ak47 stated that, with a “potential Fed rate cut and altcoin ETF approval this fall, the next rally might be substantial.”
CME’s FedWatch Tool indicates that market participants see an 86.4% probability of the US Federal Reserve cutting interest rates for the first time this year in September, commonly viewed as a bullish indicator for crypto as investors seek higher yields in riskier assets.
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