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