Social media is being flooded with Bitcoin bulls, but is now really a good time to buy the dip?

In the past 24 hours, the crypto market has once again completed a "roller coaster", and at the bottom of the collapse, the chemical reaction of market sentiment on social media is brewing. A large number of people who are optimistic about the crypto market have expressed their "bottom-fishing" remarks on social media. Both the Bitcoin community and the altcoin market have begun to have a sense of looking forward to the future after the joke trend about "McDonald's expansion" has passed, as if this big drop has created a new once-in-a-lifetime opportunity.

According to Santiment data, after Bitcoin fell below the $30,000 mark, the Bitcoin weighted social sentiment index hit the bottom, the last time such a low peak occurred 12 months ago. Such market conditions have been considered golden opportunities to buy Bitcoin in the past, as many strong market recoveries have occurred within this index range.

However, after all, past data does not represent the future, and this is the first time in 2021 that the index has reached a low point, so the best strategy at present is to do a good job of risk control. After all, buying directly based on other people's orders may not be a good choice.

But it is not a wise choice to completely deny "bottom fishing". We can observe the current position of the Bitcoin market. According to the daily chart, the "bottom fishing" sentiment is positive because Bitcoin has recently entered a box-shaped shock trend. The probability of rebounding from this range is still high, and the bulls are ready to go. At present, it seems that it may just lack a new outbreak point.

Zooming in on the chart, the trend at the macro level remains calm. Bitcoin has formed a very strong resistance level around $34,000 in the past month, which means that the market may fail to reach the top again in the next few weeks and fall to another low. In the next two weeks, Bitcoin may move towards $35,000 again, but this cannot be confirmed as a bullish reversal signal.

If it hits a wall at $35,000 and falls back, the next support level will be below $24,000. From this perspective, "bottom fishing" does not seem entirely wise. In terms of on-chain fundamentals. The active addresses of both Bitcoin and Ethereum have begun to decrease. According to data, Bitcoin's active addresses have fallen by 24% since their peak between March and May, while Ethereum's active addresses have fallen by about 30%.

According to CryptoQuant CEO Ki Young-Ju, the Bitcoin bear market may have been confirmed in the past 24 hours. Young-Ju mentioned that whale selling on exchanges has reached new highs in the past 24 hours.

Therefore, investors should think carefully before making a decision to "buy the dip". Being more patient may lead to finding better entry opportunities in new trends.