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Buy the Dip Sentiment Wanes But Altcoins Flashing Underbought Signal, Know More

As the trader sentiment around Bitcoin wanes, they have moved the attention to altcoins flashing the underbought signals.
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Buy the Dip Sentiment Wanes But Altcoins Flashing Underbought Signal, Know More

Over the last few weeks, the broader cryptocurrency market has come under selling pressure with Bitcoin and some top altcoins heading lower. There’s a lot of uncertainty surrounding the macro developments and the ongoing US debt ceiling negotiations.

On-chain data provider Santiment shows that traders’ enthusiasm for Buy the Dips has waned amid dip opportunities becoming more realistic. It noted:

We are seeing the common paradox of traders buying short-term, small #crypto price dips, but scared to buy the longer-term bigger ones. Mentions of #buythedip or #boughtthedip are dormant. Historically, this kind of #FUD has been good to capitalize on.

Courtesy: Santiment

On the other hand, it seems that Bitcoin miners have continued to add throughout the month of May. Data from Glassnode shows that post the implosion of the FTX crypto exchange, miners have expanded their balance sheet by 8,200 Bitcoins with their total holdings now moving closer to 80K BTC.

Also, during the month of May, Bitcoin miners raked in a total of 12.9 BTC in mining rewards per block. Only for the fifth time in history, the Bitcoin miner fee revenue has surpassed the subsidies.

Courtesy: Glassnode

Altcoins Flash Underbought Signals

While the Bitcoin price continues to remain under selling pressure, traders’ attention has now shifted to altcoins. Santiment reported:

With markets seeming dull to traders, we’re continuing to see restless addresses emptying their wallets and selling at a loss. Our MVRV model, indicates the vast majority of #altcoins are flashing underbought signals across the sector.

Courtesy: Santiment

Some of the other popular crypto market traders are also stating that the time to buy altcoins is now. Popular crypto analyst and EightGlobal founder Michael Van De Poppe recently tweeted:

For altcoins, the time to accumulate them has come. One year before the halving -> time to buy those positions. Reached an important level here, which is also approx. 1 year before the halving.

Some altcoins like Litecoin (LTC) are already showing strength. Before the current retracement, the LTC price surged above $90 in a bullish momentum driven by the upcoming halving event.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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