Is it time to buy Bitcoin "buy on dips" to reach a 7-month high?

Author: Stephen Katte, CoinTelegraph; Translated by: Tao Zhu, Golden Finance

Against the backdrop of a recent plunge in cryptocurrency prices that have caused Bitcoin to fall below $80,000, the rate of mentions on social media about cryptocurrency buying on dips soared to its highest level since last July.

Santiment’s social sentiment tracker found that between February 25 and 26, traders’ discussions on various social media channels such as X, Reddit and Telegram “showed very high confidence”, deeming the decline “a time worth buying,” the platform said in a February 28 post to X.

It added that this is the highest level of interest in buying dips in cryptocurrencies in seven months.

On February 25, US President Donald Trump announced plans to impose a 25% tariff on Canada and Mexico, and Bitcoin fell below $90,000.

After that, Bitcoin price further gave up on its post-U.S. election gains, falling below $80,000 on February 28 after Trump threatened to further impose 10% tariffs on China and other macroeconomic uncertainties.

Santiment’s tracker filters cryptocurrency-specific social media channels to identify the 10 most significant growth in the past 14 days. Source: Santiment

However, the analysis platform says that high interest in buying on dips is not necessarily a sign of entering the market, as the market tends to move in the opposite direction to expectations.

“Ideally, we are waiting for this group enthusiasm to fade, which is a signal that retail traders have suffered enough to justify the rebound,” Santiment said.

“The market is moving in the opposite direction to public expectations, so a decline in optimism and a decline in buying on dips can serve as bullish signals.”

According to Santiment's approach, its tracker filters through cryptocurrency- specific social media channels such as X and Telegram to find out the top 10 words with the most significant increase in social media mentions compared to the previous two weeks.

According to CoinMarketCap, Bitcoin has fallen more than 21% in the past 30 days and 5% in the past 24 hours, trading at about $80,400. Ethereum has fallen more than 30% in the past 30 days and 7.54% in the past day, trading at about $2,139.

Santiment said in a follow-up article that it is no surprise that prices will fall further after "retail investors are confident about the prospect of buying on dips".

" If people become lack of interest or frustration, it means that the real buying opportunity has arrived," the platform said.

Google Trends data shows that "buy on dips" search interest soared to 100 on February 26 in a one-week timeframe. However, search interest has since dropped to 49 out of 100 points.

Google Trends data shows that many people are interested in the word "buy on dips". Source: Google Trends

Meanwhile, on February 25, the search volume for the word “encryption” reached its highest level of 100 in the past seven days, and is currently 87 points (out of 100 points).

According to Google Trends FAQ, 100 points means the highest search volume for the word, while 0 points means the relatively low search volume for the word that day.