In states of extreme fear, Bitcoin’s “Buy the dip” crowd shrivels
Bitcoin, the king of cryptocurrencies has tumbled down and is currently in a gully where it’s price has plummeted since the beginning of this year. However, in times of a crash, the general trend that follows between crypto enthusiasts & investors is to “buy the dip”. However, a report from Santiment states otherwise.
“Buy the dip” or “brought the dip”
Data & research from Santiment analyzed the calls & chorus around use phrases like “Buy the dip” or “brought the dip” and it was found that most enthusiasts had already brought the dips before the token hit its lowest price levels in Dec & Jan crashes.
The trend of buying the dip reportedly weaseled out during the initial days of January, when BTC was in minor rallies as the token began to see its much hindered $50,000 levels. However, the token later crashed by a mile indicating that people had already brought the dips between $46K-$49K levels.
Bitcoin price’s technical aspects
Apart from the social banter, onto the more technical aspects of things, Bitcoin’s own metrics can reveal a lot of its position and investor’s stance on the token. Bitcoin’s velocity has been steadily following a downward trend since Dec 6 2021 & has stayed below 0.035 with minor peaks seen around the time frame. The lower velocity of the token means that the activity of the coin designed by Satoshi Nakamoto has reduced thereby showing the “buy the dip” crowd had shriveled
However, another data from Glassnode clearly shows us the amount of tokens hodled & lost. With the numbers hitting a 1 year high of 7,287,363 BTC, while assuming that more coins are hodl-ed, it is clear that Bitcoin enthusiasts are confident in the token, hoping for a bullish rally.
📈 #Bitcoin $BTC Amount of HODLed or Lost Coins just reached a 1-year high of 7,287,363.609 BTC
View metric:https://t.co/dJK8rxBVD3 pic.twitter.com/t5Fx3iohNW
— glassnode alerts (@glassnodealerts) January 16, 2022
The President of El Salvador, Nayib Bukele who has planned to create the world’s first Bitcoin city & is usually famous for buying the dips on Bitcoin, announced that he missed the dip this time. At the time of writing, Bitcoin is down by at least 9% since the start of the year while currently being traded at $42,000 levels.