Has Bitcoin hit bottom? Buy The Dip Sentiment weakens as it falls to $60,000

Bitcoin has he was going down as it reached an all-time high in March. This has largely led to a buy-buy sentiment among cryptocurrency traders, with many believing that the correction will end as soon as it ends and Bitcoin will once again rise to up-to-date all-time highs.

Has Bitcoin hit bottom?

Bitcoin fell from $63,000 to $60,000 on Friday, extending its trading range over the past few weeks. As Santiment noted, investors are becoming less enthusiastic about buying dips, according to social media interactions.

While this may be concerning to some investors, Bitcoin’s exceptional price movement over the years has led Santiment to note that it is generally a good sign that a bottom is approaching.

To explain further, sentiment tends to become quite negative when Bitcoin falls from all-time highs. Historically, however, the point at which the “buy the dip” talk on social media begins to wane is often a sign that the bottom is closer than most people realize.

The fading “buy the dip” speech suggests that the delicate and fearful bears have sold out and the bulls are starting to position themselves.

🤔 Traders turn out to be delicate #buythedip interest in #Bitcointhe latest pullback dropped to just 60.2k today. dollars. Generally speaking, crowd disbelief is a powerful sign that prices are approaching approx #bottom. Monitor the level of public interest to see if #FUD remains high. https://t.co/cZjTWcCnL2 pic.twitter.com/Nj19XkIdgq

— Santiment (@santimentfeed) May 10, 2024

Unfortunately, only after the fact can one be sure whether prices have bottomed out. However, the key support levels on the Bitcoin chart have not broken down and the fundamentals have not changed. If Bitcoin continues to stay above $60,000, it may mean that a bottom has been hit.

Bitcoin is now trading at $60.991. Chart: TradingView

BTC risk signal bottoms out – Woo

Simultaneously, bullish narrative for Spot Bitcoin ETF driving increasing mainstream adoption continues to take place, which means the cryptocurrency could soon turn into a full-blown bullish action.

Other key factors also point to this Bitcoin is nearing the bottom. As cryptocurrency analyst Willy Woo noted, Bitcoin’s risk signal a lower height was recently printedthat is, a formation that often paves the way for an upward trend.

At the time of writing, Bitcoin is trading at $61,000 and is down 4.2% in the last seven days. While Bitcoin may have formed a bottom, the slump could continue for the next few months until the massive supply resulting from the halving is factored into its price.