Bitcoin Sentiment Shifts From 'Sell the Rally' to 'Buy the Dip'—Is It Justified?

Bitcoin has shifted traders’ bias toward buying dips, yet experts warn of a pullback to $72,000.Are Bitcoin Dips Now for Buying?Speaking on the Crypto Options Unplugged podcast on Sept. 10, Blockchain.com’s Global Head of OTC Trading Mark Sishka said Bitcoin’s rally toward $80,000 has shifted traders from "sell the rally" to "buy the dip."The rally was driven by a major short squeeze, but the magnitude of the move has forced traders, waiting for sub-$60,000 prices, to reconsider.And yet, Bitcoin looks "toppy" near current levels, while rebuilt long leverage could trigger a short-term flush toward $70,000 to $72,000.A pullback to that zone could establish a higher low before another attempt at $82,000 to $85,000."Any short-term flush outs are going to get bought on the dip," Sishka said.Options Market Shows Sentiment TurningBitcoin options are also beginning to reflect the shift.Long-dated skew, which had favored puts for an extended period, has moved toward flat or slight call premium following Bitcoin’s rally.That suggests longer-term traders are becoming less focused on downside protection and more willing to position for further upside.Demand has also emerged for short-dated Bitcoin calls around $82,000-$85,000, while Ethereum traders have bought upside exposure around $2,800 to $3,500.Sishka said institutional demand remains strong, particularly when Bitcoin trades near lower levels.Is the Bear Market Ending?Sishka said he still watches Bitcoin’s historical four-year cycle as a guide and acknowledged that another cycle low below $60,000 remains possible if history repeats closely.But he sees the current market differently after Bitcoin’s latest rally.Investors who expected another deep decline are increasingly worried they may miss the next leg higher, creating demand on pullbacks rather than rallies.That shift could become more important than whether Bitcoin revisits $70,000 in the short term.Read Also: Image: Shutterstock