Since hitting an all-time high in March, Bitcoin’s value has been on a pronounced downward slide, prompting a buy-the-dip mentality within the cryptocurrency community. Many traders are banking on the crypto’s volatility, confident that the adjustment would bottom out soon and Bitcoin’s steep climb to record-breaking heights would continue.
However, crypto analytics powerhouse Santiment has observed a dwindling thrill for cheap Bitcoin as the consolidating of the digital currency lingers around the $60,000 price point. This declining enthusiasm in the buy-the-dip strategy might suggest that Bitcoin is on the precipice of hitting a floor, a prediction shyly whispered in the confines of price history speculation.
Bitcoin’s recent tumble from $63,000 to $60,000 extended the currency’s pattern of range trading during recent weeks. Data from Santiment indicates traders are less eager about buying during the slump, a conclusion drawn from monitoring social media interactions.
Though potentially unsettling for some investors, Bitcoin’s singular cost trends over the years have led Santiment to suggest that this could indicate that the crypto is nearing its base price. When Bitcoin experiences a sharp drop from record peaks, sentiment tends to take on a decidedly negative cast. But, counterintuitively, when chatter about buying the dip starts to diminish, it often indicates that the bottom is closer than most anticipate.
This waning conversation around buying downturns alludes to spectators’ belief that Bitcoin’s frightened bears have sold out and the bullish investors are beginning their orchestration.
However, certainty regarding the exact moment prices have bottomed out will inevitably remain elusive until hindsight offers its perfect vision. Yet, the integrity of key support levels on Bitcoin’s chart remains intact and the underlying fundamentals appear unscathed, suggesting that if Bitcoin continues to maintain levels above $60,000, it may be nearing its lowest price point.
Currently, Bitcoin is trading at $60,991.
The optimistic narrative driving the bullish Spot Bitcoin ETF, leading to escalating mainstream adoption, retains its vigor, indicating that the crypto could veer into a fully bullish vector soon.
Other crucial indicators also hint that Bitcoin may be nearing its base. Crypto analyst Willy Woo highlighted that Bitcoin’s risk signal recently marked a lower high, a pattern that traditionally heralds the emergence of a bullish trend.
As it stands, Bitcoin is trading at $61,000, marking a 4.2% reduction over the past week. Despite indications that Bitcoin may have found its base, price stability might linger in the coming months until the strained supply catalyzed by the halving weighs in on its price.
Intriguingly, a silent cohort of new whale addresses has been discreetly accruing Bitcoins. On-chain data from Whale Alerts records the recent relocation of 1,999 Bitcoin into new private addresses, a subtle but potentially significant movement in the ever-shifting landscape of cryptocurrency trading.
