Santiment Highlights Investor Sentiment Amid Market Fluctuations

According to BlockBeats, Santiment, a cryptocurrency market analysis firm, shared insights on social media regarding recent investor behavior following a slight market correction on Tuesday. The firm noted a significant increase in discussions among retail investors about 'buying the dip.' Historical data suggests that when enthusiasm for 'bottom fishing' is high, the market often experiences a short-term rebound, followed by greater downward pressure. Santiment emphasized that the ideal time for buying the dip is when the general expectation for a market rebound is low. When retail investors believe that the market has sufficiently released its risks, they are often met with more severe declines. A genuine strong rebound typically begins when optimistic sentiment (FOMO) among investors transforms into fear and uncertainty (FUD). For patient traders, this shift in sentiment serves as the true signal for buying the dip.