Santiment: Bitcoin Has Not Really Hit the Bottom, "Buy the Dip" May Just Be a Psychological Trap

After Bitcoin plummeted to the zone of 108,000 USD, many investors began to debate whether the largest cryptocurrency in this market has bottomed out or not. The on-chain analysis platform Santiment recently expressed the view that signals from the current social sentiment indicate that BTC may not have truly bottomed out yet, and a deeper fall may still be ahead. The Psychology of “Buy When It Falls” Remains Strong According to Santiment’s research report, a true bottom out of Bitcoin is often determined not just by price, but also by changes in the narrative (market story). Specifically, when the community remains optimistic with the “buy the dip” mentality (buy when the price falls), it indicates that confidence has not been entirely eroded. Conversely, a solid bottom often appears when the sentiment shifts entirely to widespread fear – at a time when the majority of investors no longer believe in the opportunity to buy low. Brian Quinlivan, an analyst at Santiment, emphasized that the market has only just undergone a “price cool-off” and not a real strong correction yet. He also noted that BTC has shown signs of decoupling from the S&P 500 index – this could lead to a “catch-up” phase after the overly optimistic sentiment is extinguished. “The real buying opportunity will arise when the crowd no longer believes there is a chance to buy in,” Quinlivan said. Signs to Watch: Bitcoin Whale Transactions In addition to social psychological factors, Santiment also refers to another important indicator: the flow of Bitcoin whale wallets ( holding from 10 to 10,000 BTC). According to Maksim – another analyst from Santiment, these wallets currently show no signs of strong sell-offs, despite the falling price of Bitcoin. This can be seen as a positive point, reflecting the long-term holding confidence from large individuals/institutions. However, Santiment also warns: when large wallets start to significantly reduce their holdings, this often leads to a “delayed price suppression” effect in the following weeks. Therefore, monitoring the behavior of whales is key to determining whether the market has bottomed out or not. Conclusion Currently, the price of Bitcoin is trading around 107,800 USD, falling in the past 24 hours according to data from CoinMarketCap. However, according to Santiment, this figure is not enough to confirm the bottom out of the market. More importantly, it is essential to monitor the shift in community sentiment and the behavior of Bitcoin whales. Only when the mentality of “buying on the dip” is completely replaced by fear, and whales start to make clear moves, then the possibility for BTC to bottom out firmly in preparation for a stronger recovery cycle arises.