After Bitcoin (BTC) lost its psychologically important level at $30,000, it has continued to stagnate at around $26,000, leading to the deflation of the initial optimism among the cryptocurrency crowd, which originally saw the dip as an opportunity to accumulate at a lower price.
Indeed, Bitcoin has been stuck in the above range for five days now, not making any significant movement in either direction, which has caused a reduction in the early ‘buy the dip’ mentions, according to the report published by cryptocurrency market intelligence platform Santiment on August 22.
Specifically, social volume and social dominance of keywords ‘(buy OR bought) AND (dip OR dips)’ for Bitcoin spiked at the same time when the flagship decentralized finance (DeFi) asset plummeted from $30,000 to $26,000, only to decline significantly in the following days as stagnation ensued.
According to Santiment’s analyst Brian Q, the crypto trader optimism at the beginning of the dip was quite high, as they believed that it would precede a quick market recovery, but such “wishful thinking has died down considerably in the past few days,” as he explained.
That said, he specified that once the dip buy mentions across four observed platforms – Telegram, Reddit, 4chan, and X (formerly Twitter), “align and have settled back down to neutral mentions of buying the dip, this is when the actual opportunity has historically presented itself for patient traders.”
Currently, Reddit seems to be the community that had the biggest ‘buy the dip’ sentiment, and it is still higher than on other social platforms, while X had a small spike followed by a drop back to neutral on the members’ optimism.
Bitcoin price analysis
In the meantime, the maiden crypto asset is presently changing hands at the price of $26,025, indicating a decline of 0.11% in the last 24 hours and an 11.25% drop across the previous seven days, adding up to the cumulative loss of 13.01% on its monthly chart.
Interestingly, the original optimism does not seem misplaced, as certain chart patterns do, indeed, suggest a possible price recovery for Bitcoin, at least in the longer term, particularly the entry into its fourth ‘bull box,’ which might lead to a new all-time high (ATH) in the next couple of years, according to crypto expert Trader Tardigrade.
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