Bitrabo Editorial
Despite recent dips in Bitcoin’s price, investors are not showing a “buy the dip” mentality, according to data from on-chain analytics firm Santiment. The current “fear, uncertainty, and doubt” (FUD) in the market has historically provided good opportunities for the asset, but the “social volume” indicator, which measures the total amount of social media activity around a given topic, is down for dip-related terms. This indicates that investors are afraid of buying at current levels.
The chart in the article shows the decline in social volume for dip-related terms over the past few weeks. Compared to when the asset plunged below $20,000 in March, when there was still moderate interest, there is currently little enthusiasm in the market despite the recent price decline. Historically, the more the majority predicts that Bitcoin will move in one direction, the more probable it is to move in the opposite direction.
Bitcoin is currently trading around $26,400, down 1% in the last week. “We are seeing the common paradox of traders buying short-term, small crypto price dips, but scared to buy the longer-term bigger ones,” notes Santiment. But, given historical trends, this kind of FUD has provided good opportunities to capitalize on.