Has Bitcoin hit bottom? Buying sentiment fades as it drops to $60,000.

Since hitting an all-time high in March, Bitcoin has been on a decline. This has largely led to buying sentiment among cryptocurrency traders on dips, with many believing that once the adjustment is over, Bitcoin will soar to new highs again.

According to the data from the cryptocurrency analysis platform, as the price of Bitcoin hovers around $60,000, the excitement of buying "cheap" Bitcoin seems to be waning. As the data platform points out, this weakening of the "buy the dips" mentality may actually be a signal that Bitcoin is approaching its bottom.

On Friday, Bitcoin plummeted from $63,000 to $60,000, continuing its range-bound trading over the past few weeks. As indicated by the data platform, traders' enthusiasm for buying the dips has been decreasing based on social media interactions.

Although this may cause some investors to worry, the unique price trend of Bitcoin over the years has prompted Santiment to point out that this is often a good sign that the bottom is approaching.

To further explain this point, when Bitcoin experiences a big dump from its historical high, the sentiment tends to become very negative. However, historically, the moment when the "buy the dips" sentiment on social media starts to fade often indicates that the bottom is closer than most people imagine.

"The remarks of '逢低买入' gradually fading away indicate that the weak and fearful bears have sold off and the bulls are starting to position themselves."

Unfortunately, it is not possible to determine whether the price has bottomed out until after the fact. However, the key support level on the Bitcoin chart has not been broken, and the fundamentals have not changed. If Bitcoin continues to stay above $60,000, this may indicate that the bottom has arrived.

Meanwhile, the bullish spot Bitcoin ETF is still driving the mainstream adoption rate higher, which means that cryptocurrencies may soon reverse to a fully bullish trend. Other key factors also indicate that Bitcoin is approaching the bottom. As pointed out by cryptocurrency analyst Willy Woo, Bitcoin's risk signals have recently reached a lower high, a pattern that often paves the way for a bullish trend.

The current Bitcoin trading price is $61,000, which has dropped 4.2% in the past 7 days. Although Bitcoin may have formed a bottom, this calm trend may continue for the next few months until the halving supply shortage affects its price. It is worth noting that some new whale addresses are quietly accumulating Bitcoin. On-chain data from Whale Alerts shows that recently, 1,999 BTC has been transferred to new private addresses.

(DataSource: Scott Matherson)