Bitcoin traders and short-term speculators have always been 'buying on dips', but this sentiment seems to be weakening at the moment.On May 26th, on chain analysis provider Santiment observed that Bitcoin traders often purchase short-term, small cryptocurrency prices, but are hesitant to purchase long-term, larger price drops
Bitcoin traders and short-term speculators have always been 'buying on dips', but this sentiment seems to be weakening at the moment.
On May 26th, on chain analysis provider Santiment observed that Bitcoin traders often purchase short-term, small cryptocurrency prices, but are hesitant to purchase long-term, larger price drops.
It added that the talk of bargain hunting is currently dormant, indicating that market sentiment is very weak.
From a historical perspective, this # FUD has always been well utilized, "it said.
In addition, since rebounding to slightly below $31000 in mid April, Bitcoin prices have fallen by nearly 15%. The current insufficient trading volume also indicates that this decline is not enough to attract more purchasing pressure.
Bitcoin decline support
Santiment also reported an increase in loss selling for cryptocurrency holders. It uses the MVRV (ratio of market value to realized value) indicator, which indicates that most encryption assets in the industry are flashing short buying signals.
Due to the market seeming dull for traders, we continue to see restless addresses clearing their wallets and selling at a loss
Glassnode pointed out that using the previous bull market peak as an anchor, Bitcoin prices have dropped to the gold Fibonacci ratio of -61.8%. This is $26200, and the price dropped to that level a few hours ago.
Since then, BTC has slightly increased to slightly below $26500 at the time of writing this article, but remains bearish in the short term.
After several weeks of consolidation and slow depreciation, the Bitcoin Fear and Greed Index has remained neutral. It currently displays a value of 49 from the past two weeks.
Cryptocurrency Market Outlook
The cryptocurrency market fell to a ten-week low on late May 25th, with a total market value of $1.14 trillion. They only slightly rebounded during the Asian trading session on Friday morning, indicating that there may be more consolidation over the weekend.
After falling to $26000, BTC prices rose by 0.5 percentage points on the same day, but are still in a sideways consolidation state, hovering slightly above long-term support levels. Breaking through from here will find further support at around $25000.
The price of Ethereum fell to $1770 yesterday, but at the time of writing, it had rebounded to $1807.
The only counterfeit currencies that have shown measurable returns at present are XRP, MATIC, and LTC, all rising 3% on the same day.
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