Bitcoin is down. Panic is everywhere. And everyone is asking the same question.
Is this a good time to buy the dip?
Let's look at what's actually happening.
Right now, most people selling Bitcoin are selling at a loss.
They bought near the top and are now capitulating.
That is painful for them, but here is what it tells us.
New capital is leaving the market.
Over the past 30 days, roughly $2.6 billion has exited Bitcoin.
In a strong market, dips attract fresh buyers.
Right now, that support is missing.
Every bounce feels weak because no one is stepping in.
The realized profit to loss ratio is at 0.25.
That means for every dollar of profit taken, four dollars of losses are being locked in.
This is what happens when confidence breaks and sellers take control.
So that sounds terrible. Why would anyone buy now?
Here is the caveat.
Santiment data shows something important.
Periods of extreme fear often show up right before short-term bottoms.
When social media is flooded with words like crash and sell, price is often already close to a local low.
And here is the counterintuitive part.
Traders tend to stop buying dips right before the market recovers.
The selling pressure slows down when confidence is gone and negativity is maxed out.
That is exactly when the market has room to breathe and bounce.
Look at the MVRV metric.
It shows whether recent buyers are in profit or loss.
Right now, many holders are sitting on losses.
That means the forced selling we are seeing is likely the final stage of a washout.
When there is no one left to panic sell, the selling naturally stops.
Here is the truth about bottoms.
They do not happen when everyone is optimistic.
They do not happen when everyone is confidently buying the dip.
Bottoms happen when it feels terrible.
When it feels like it will never recover.
When the people who were buying every dip have finally given up.
We are not there yet, but we are closer than we were a month ago.
So is this a good time to enter?
Not if you need confirmation.
Not if you need the crowd to agree with you.
But historically, the best entries happen when the mood is exactly like this.
Watch the realized loss data.
Watch the exchange outflows.
If panic selling starts to slow and coins start moving off exchanges again, the foundation for a bottom is being built.
Right now, fear is doing the heavy lifting.
And fear is what creates the best opportunities.
