Bitcoin price dip: BTC briefly retraced to $112,600 as retail panic selling pushed social sentiment to multi-week lows, creating a potential dip-buying setup for longer-term investors.
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BTC fell to $112,656, marking an 8.5% retreat from last week’s all-time high.
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Social sentiment hit its lowest level since June, driven by retail panic selling per Santiment.
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Market data shows a two-week low in total crypto market cap under $4 trillion, signaling a possible short-term bounce.
Bitcoin price dip: BTC fell to $112,600 amid retail panic selling; read expert analysis and dip-buyer guidance now.
Bitcoin retraced to a low of $112,600 as retail panic selling resulted in the most bearish social sentiment since June, but analysts see a buying opportunity ahead.
Retail crypto traders have seemingly flipped bearish after Bitcoin failed to sustain levels above $113,000, recording a 17-day low in price action.
“Retail traders have done a complete 180 after Bitcoin failed to rally and dipped below $113,000,” said analysts at Santiment on Wednesday.
Santiment also reported that the past 24 hours have marked “the most bearish sentiment seen on social media” since June 22, when geopolitical fears prompted a wave of panic selling.
However, Santiment noted that heightened negative social sentiment often coincides with strong dip-buying opportunities as fear peaks.
Short-term retail traders are more prone to panic selling or profit-taking than longer-term holders, who typically view BTC as a strategic asset.
Santiment described the panic selling as a “good sign of an upcoming dip bounce.”
What caused the Bitcoin price dip to $112,600?
Bitcoin price dip was driven primarily by retail panic selling and a sharp decline in social sentiment, according to Santiment. Rapid profit-taking after a failed rally below $113,000 pushed BTC to $112,656 on Coinbase, while total market cap fell under $4 trillion.
How did social sentiment and retail selling drive the decline?
Negative social sentiment intensified as retail traders reacted to price weakness. Santiment’s data shows this is the weakest social mood since June, and the Fear & Greed Index moved into “Fear” with a reading of 44/100.
Retail panic amplified short-term selling pressure, while larger holders remained relatively unchanged, creating a liquidity gap that deepened the pullback.
Bitcoin falls to support zone — how low did BTC go and what does it mean?
Bitcoin (BTC) fell to $112,656 in late trading on Tuesday on Coinbase, according to TradingView, its lowest price since Aug. 3. BTC has retreated 8.5% from last week’s all-time high near $124,000 and the total crypto market cap slipped below $4 trillion.
The Fear & Greed Index dropping to 44 indicates market caution. Markets often reverse direction after sentiment reaches extreme pessimism, which can create buying opportunities.
Will bull cycle history rhyme?
Market corrections are common in bull cycles and can act as healthy resets. Past cycles show similar pullbacks — in 2017 BTC corrected ~36% in September then surged months later; in 2021 it corrected ~23% before new highs.
If historical patterns repeat, BTC could see deeper short-term weakness—potentially toward $90,000—before recovering to new all-time highs later in the cycle. That scenario depends on macro factors and buyer conviction.
Frequently Asked Questions
Is $112K the final bottom for Bitcoin?
$112K is a near-term support zone, not necessarily the final bottom. Historical bull cycles have seen deeper pullbacks before resuming upwards, and some scenarios project lows nearer $90K if the correction deepens.
What indicators suggest a bounce is likely?
Extreme negative social sentiment, lower Fear & Greed Index readings, and seller exhaustion often precede a rebound. Santiment flags panic selling as a contrarian buy signal for dip buyers.
How should short-term traders respond?
Short-term traders should manage risk with position sizing and stop-losses; consider scaling into positions rather than full exposure, given volatility and possible further downside.
Key Takeaways
- Immediate cause: Retail panic selling and ultra-bearish social sentiment pushed BTC down to roughly $112,600.
- Technical context: BTC is ~8.5% below last week’s high and total market cap fell under $4 trillion.
- Actionable insight: Extreme fear often precedes rebounds; consider staged buying and strong risk controls.
Conclusion
Bitcoin’s recent retrace to around $112,600 reflects a short-term shift in retail sentiment rather than a definitive end to the bull cycle. Monitor sentiment measures, on-chain flows and institutional activity for confirmation. COINOTAG will continue tracking developments and updating this story.
