On May 26, on-chain analytics provider Santiment observed that Bitcoinย (BTC) traders often buy short-term, small cryptocurrency price dips but have been scared to buy the longer-term bigger ones.
It alsoย mentionedย that mentions of buying the dip are dormant asย ofย now, suggesting very weak market sentiment.
โHistorically, this kind of #FUD has been good to capitalize on,โ it said.
Furthermore, Bitcoinย (BTC) prices have retreated almost 15 percent since its rally to just under $31,000 in mid-April. The lack of volume asย ofย now likewise impliesย that this dip isnโt low enough isย still to entice more buying pressure.
Bitcoinย (BTC) Falls to Support
Santiment likewise informed that there has been an boostย in selling at a loss between cryptocurrency holders. It used the MVRV (market-value-to-realized-value) metric, which signifies the vast bulkย of cryptocurrency assets are flashing under- purchased indicates across the sector.
โWith markets seeming dull to traders, weโre continuing to see restless addresses emptying their wallets and selling at a loss.โ
Glassnode pointedย outย that using the previous bull market peak as an anchor, Bitcoinย (BTC) price hasย dropped to the golden Fibonacci ratio of -61.8%. This is at $26,200, where prices had fallen to severalย hours ago.
Everย 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 Bitcoinย (BTC) Fear and Greed Index has remained at neutral status. It is asย ofย now showing a value of 49 where it has been duringย theย 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 mayย 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.
Ethereumย (ETH) prices dropped to $1,770 yesterday but have since recovered to trade at $1,807 at the time of writing.
The only cryptoย altcoins posting a measurable gain asย ofย now are XRPย Rippleย (XRP), MATIC, and LTC, each having gained 3 percent on the day.
