Bitcoin Dip-Buy Mentions Surge on Social Media Amid Price Crash

Bitcoin's price decline has triggered increased "buy the dip" mentions on social media, as noted by analytics firm Santiment. However, this enthusiasm might be a contrarian signal.

Key Observations

Santiment highlights the significance of the "Social Volume" indicator, which tracks unique mentions of specific terms across social media platforms.
Recent spikes in Bitcoin-related "buy the dip" mentions suggest heightened interest among social media users.
Historically, prices often move contrary to popular sentiment. Thus, current dip-buying enthusiasm may precede further declines before stabilization.
The Binance Funding Rate, another metric observed, turned sharply negative ahead of the recent Bitcoin price drop, indicating a prevalence of short positions.
Post-decline, the Funding Rate turned positive, signaling traders' hopes for a rebound.
A prolonged period where shorts outpace longs may eventually lead to a price recovery.

BTC Price Update

Bitcoin remains unable to recover from its recent crash, trading around $112,700.