Crypto traders have reportedly turned bearish since Bitcoin has failed to recover from its recent drop below $113,000 and reached a new 17-day low.
“Retail traders have done a complete 180 after Bitcoin failed to rally and dipped below $113,000,” said On Wednesday, analysts from blockchain analytics firm Santiment spoke to reporters.
Santiment reported also that the last 24 hours had marked “the most bearish sentiment seen on social media” On June 22, the fears of a war in Syria began. Middle East A cascade of panic-driven sales was triggered.
Santiment believes that negative social sentiments are good for buyers who have experienced a dip in the market, particularly when it is coupled with a drop in prices. “blood in the streets and fear is maximized.”
The short-term retail trader is also more inclined. panic sell They may make more money by slashing or grabbing profits, than their counterparts who invest in the class of assets for a longer period.
Santiment claimed that this was the result of panic sales. “good sign of an upcoming dip bounce.”
Bitcoins fall to support zone
BitcoinBTCTradingView reported that this was the lowest price for a Bitcoin since 3 August when it dropped towards support levels of around $112,000.
BTC’s value has declined by more than 8.5% since its high of $124,000 reached last week. The total cryptocurrency market capitalization is down to below $4 trillion, a new two-week-low.
Related: Why is Bitcoin crashing and will $112K be the final bottom?
The Bitcoin Fear & Greed Index has slipped Get in touch with us today to learn more. “Fear” The rating is 44/100, the lowest it has been since late June.
“Markets move in the opposite direction of the crowd’s expectations,” Santiment.
Can bull-cycle history be recited?
Corrections in the market during a bull-cycle are not new. They are an important part of a larger cycle. These pullbacks are often called “bear traps“, which occurred in previous cycles at the same point in the cycle.
BTC’s bull-market year of 2017 saw a 36% correction in September, before surging three months later to reach a new high.
The same scenario occurred in 2021. BTC dropped 23%, before soaring to new heights later on that year.
The history of the world is similar to a song. correction BTC may drop to $90,000. Next month, before regaining a higher level, it could reach a depth of 2025.
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Source: cointelegraph.com
