Time To ‘Buy The Dip’? This Is What Crypto Traders Are Up To

Anvesh Reddy
September 27, 2022
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bitcoin buy the dip

At a time when cryptocurrencies including Bitcoin display high volatility, a section of traders seem planning to buy the dip. In the last one week alone, Bitcoin (BTC) showed a gap of 11.15% between weekly high and low price range. In this context, the last few weeks saw a lack of social activity around buying the dip. But recent data showed a huge spike in daily social dominance metric for ‘buy the dip’ mentions. The BTC market cap currently stands at $317 billion, compared with the monthly high of $431 billion.

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Is It Time To Buy The Dip?

Despite setbacks on several fronts, there is a community of ‘buy the dip’ supporters. The current bear market cycle is faced by unprecedented regulatory pressure and negative macroeconomic scenario. Bitcoin’s unprecedented levels of low whale holdings reflects the dwindling confidence in price revival in near future. Currently, the BTC whale holdings are at 29 month lows, as per on chain data.

There has been a clear decline in the number of buy the dip mentions as the crypto winter continues to drag on. Although the number of mentions are dropping, a section of crypto traders seem determined to drive the idea of buying the bottom. This is reflected in the on chain data from Santiment. Earlier in the week, there was an abnormal spike in the mentions. At the same time, BTC was trading at under $19,000 levels.

“Overall social activity on crypto market is declining quite fast. Buy the dip callers becoming more and more dominative in dissolving crowd. The day they are gone could possibly indicate a bottom.”

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Where Is The Bottom?

Recent market bottoms suggest that the bottom buying calls are triggered whenever there is a downtrend. However, these trends tend to reduce while approaching the BTC bottom. However, considering the strange price pattern BTC displayed in the current cycle, it is possible that the cryptocurrency could drop further. As of writing, BTC price stands at $19,049, down 0.01% in the last 24 hours, according to price tracking platform CoinMarketCap. Earlier in the week, the top cryptocurrency dropped to a low of around $18,300, while the high was $20,334.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.