Data shows that calls to “buy the dip” for Bitcoin increased on social media after the asset fell below the $66,000 level.
Bitcoin social volume for conditions related to buying the dip has increased
According to data from analytics firm Santiment, Bitcoin investors reacted more strongly with bullish calls than bearish calls despite the sharp decline seen by the asset.
The relevance metric here is “social volume,” which tells us how much discussion a given topic or term is currently receiving on major social media platforms.
This metric works by scanning through different posts/threads/posts on these websites to check for mentions of the topic. However, the metric does not directly count these mentions, but rather the number of posts containing at least one mention.
This is naturally because a high number of mentions alone cannot be a reliable indication of whether social media users as a whole are talking about the topic, as discussions limited to a few threads can also lead to an increase in the number of mentions. this count.
In the context of the current discussion, Santiment filtered social volume for bullish and bearish keywords to determine how the two sentiments currently compare.
The chart below shows the metric trend for these terms since the start of 2024:
![Bitcoin Social Volume](https://s3.tradingview.com/news/image/newsbtc:7345cfd3e094b-d0e2ed1971d3e5d7cc892fe4e2d324d0-resized.jpeg)
To identify bullish sentiment, the analytics company used terms like “buy” or “bullish.” Likewise, “sell” or “bearish” are among the key words to express the opposite sentiment.
The chart shows that social volume for the first type of terms exploded following the latest fall in Bitcoin's price, suggesting that social media users view the drop as an opportunity to buy more.
Bearish social volume also saw an increase, but its peak was only half that of one of the bullish terms. While bullish investors may appear optimistic at first, the fact is that it actually hasn't been ideal for rallies in the past.
As Santiment notes:
Historically, the best dip buying opportunities occur when the public consensus shows some fear of further decline. This usually results in small wallets dropping their bags for whales and sharks to pick up.
As such, the current market enthusiasm may actually prove counterproductive to the chances of a bottom forming. According to the analytics firm, the real “buy the dip” opportunity for Bitcoin could present itself once red sentiment catches up with blue sentiment.
BTC Price
At the time of writing, Bitcoin is floating around $65,700, down more than 7% in the past week.