In light of recent crypto price drops, traders are optimistic about buying the dip. However, Santiment data warns of potential further price corrections.
Looking for a True Bottom
Santiment's analysis showed a sharp rise in 'buy the dip' discussions across platforms like X, Reddit, Telegram, and BitcoinTalk. The sentiment tracker hit its highest level in seven months between February 25-26, coinciding with BTC's 27% price drop. Nevertheless, experts advise caution, as markets often move against crowd expectations, suggesting that recovery might begin only after optimism cools down.
Market Turmoil Continues
At the time of writing, the crypto market had lost almost 9% of its capitalization in the last 24 hours. Bitcoin was down 7.4%, shedding over 19% in the past week. Solana, XRP, and Ethereum performed worse: SOL down 27%, XRP over 24%, and ETH lost 23.1%. Observers cited macroeconomic factors, including US trade tariffs, as reasons for this decline.
Future Prospects
Analysts warn that excessive optimism might not be the bullish signal hoped for. While some foresee Bitcoin dropping further to $70,000, caution is advised.
Investors should be cautious and not follow the crowd, as excessive optimism could signal further declines.
