Bitcoin Drops to Long-Term Support, Dip Buying Sentiment Slides

Bitcoin Drops to Long-Term Support, Dip Buying Sentiment Slides

Bitcoin traders hesitant to buy bigger price dips as mentions of buying the dip are dormant, and the lack of volume suggests the dip isn’t low enough yet to entice more buying pressure, according to Santiment’s on-chain analytics provider.

On May 26, on-chain analytics provider Santiment observed that Bitcoin (BTC) traders often buy short-term, small cryptocurrency price dips but have been scared to buy the longer-term bigger ones.

It also mentioned that mentions of buying the dip are dormant as of now, suggesting very weak market sentiment.

“Historically, this kind of #FUD has been good to capitalize on,” it said.

Furthermore, Bitcoin (BTC) prices have retreated almost 15 percent since its rally to just under $31,000 in mid-April. The lack of volume as of now likewise implies that this dip isn’t low enough is still to entice more buying pressure.

Bitcoin (BTC) Falls to Support

Santiment likewise informed that there has been an boost in selling at a loss between cryptocurrency holders. It used the MVRV (market-value-to-realized-value) metric, which signifies the vast bulk of cryptocurrency assets are flashing under- purchased indicates across the sector.

“With markets seeming dull to traders, we’re continuing to see restless addresses emptying their wallets and selling at a loss.”

Glassnode pointed out that using the previous bull market peak as an anchor, Bitcoin (BTC) price has  dropped to the golden Fibonacci ratio of -61.8%. This is at $26,200, where prices had fallen to several  hours ago.

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Ever since, Bitcoin has nudged up slightly to just below $26,500 at the time of publication but remains bearish in the short term.

Following weeks of consolidation and slow depreciation, the Bitcoin (BTC) Fear and Greed Index has remained at neutral status. It is as of now showing a value of 49 where it has been during the previous fortnight.

Cryptocurrency Market Outlook

Cryptocurrency markets dropped to a ten-week low in late trading on May 25, with total capitalization sliding to $1.14 trillion. They have only recovered marginally during the Friday morning Asian trading session suggesting more consolidation may be ahead over the weekend.

Following a dip to $26,000, Bitcoin prices have added half a % on the day but remain sideways, hovering just over longstanding support levels. A breakdown from here would find further support at around $25,000.

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Ethereum (ETH) prices dropped to $1,770 yesterday but have since recovered to trade at $1,807 at the time of writing.

The only crypto altcoins posting a measurable gain as of now are XRP Ripple (XRP), MATIC, and LTC, each having gained 3 percent on the day.


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