The increasing frequency of “buy the dip” discussions on social media after Bitcoin’s 5% drop this past week may indicate further declines for the cryptocurrency market, according to sentiment platform Santiment.
“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 stated in a YouTube video released on Saturday.
Santiment reported in another document published the same day that mentions of “buy the dip” on social media surged during the downturn in the crypto market, which could serve as a warning signal.
“Do not view ‘buy the dip’ conversations as a certain indicator of a market bottom. A genuine market floor frequently aligns with widespread fear and a disinterest in purchasing,” Santiment advised.
“An authentic bottom typically occurs when the crowd loses hope and becomes hesitant to buy,” Santiment added.
Sentiment is recovering as traders look forward to altcoin season
The total capitalization of the crypto market stands at $3.79 trillion at the time of this publication, reflecting a decrease of about 6.18% over the past week, per CoinMarketCap.
At the same time, Bitcoin (BTC) is trading at $108,748 at the time of publication, marking a 5% decline within that timeframe. On August 14, Bitcoin hit a new peak of $124,128.
Crypto analysts often note that prices tend to move in the opposite direction of retail traders’ expectations, and history indicates that when many believe the market has hit bottom, it can actually forecast more downturns.
The market sentiment is gradually improving, with the Crypto Fear & Greed Index rebounding to a “Neutral” rating of 48 out of 100 on Sunday, after falling to “Fear” at 39 out of 100 the day before.
Some traders are speculating that the recent pullback in the crypto market from Bitcoin’s recent highs may indicate an imminent altcoin season.
“Mega altseason” could be on the horizon, asserts trader
Crypto trader Ash Crypto noted in a post on X the same day that “Altcoins are currently the most oversold they have ever been.”
“Even during the Covid crash, the FTX collapse, or tariff wars, they weren’t this oversold,” the trader remarked, suggesting it might signal a “mega altseason” akin to the significant rallies of 2017 and 2021.
Related: ‘No doubt Bitcoin reaches $1M’ — Eric Trump at BTC Asia 2025
On Thursday, CoinMarketCap’s Altcoin Season Index changed from “Bitcoin Season” to “Altcoin Season,” attaining a score of 60 out of 100 upon publication.
Meanwhile, crypto trader Ak47 stated that with a “potential Fed rate cut and altcoin ETF approval this fall, the next surge could be substantial.”
CME’s FedWatch Tool indicates market participants believe there’s an 86.4% probability of the US Federal Reserve cutting interest rates for the first time this year in September, which is generally perceived as a bullish sign for crypto as investors seek higher returns in riskier assets.
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