Are the people buying the dip? See what this review says

Charlie Taylor

Have you ever stopped to count how many times you’ve seen someone scream ‘BUY THE DIP!’ on social media related to cryptocurrencies? This Santiment analyst has already and he shared his analysis with us.


“Buy the dip” which translates to something like: “buy the dip” or “buy the dip”, is an expression and is a jargon used by cryptocurrency investors and traders to signal to others that asset prices are falling and that this can be a good time to buy. incentive. Basically a call to arms for investors to buy, showing that the one who chants the battle cry is optimistic about the medium and long term for the asset and sees that moment as an opportunity to increase his position. The call may be legitimate , corresponding to the feeling of those who do it, but it can also be used maliciously, with the intention of manipulating the perception of the market, while doing the oppositeselling.

The dip most dip

According to the analysis published by Santiment, the announced dip is just the beginning of a deeper drop.Chart of santiment with the correlation of mentions of "Buy the Dip"with the price of bitcoin.Data were collected from social networks such as twitter, reddit, discord servers, telegram groups and other platforms that serve as a chat or meeting point for investor communities. blue bars in the graph above, as Social Volume. The green line represents the price movement in the BTC/USD pair. When we look more closely, we see the small cycle that started with a bottom in late September 2021, followed by a rally, with a double top being the first in the halve. October and the second in mid-November of the same year.The same chart as above, but with a closer view at the current time.Prior to the bottom setting in September, we see a spike in the rise in social volume (social volume) and during the bullish movement, volume decreases considerably. It is after the second top – marking the end of the bullish movement – ​​that we see mentions of “buy the dip” going up again, reaching a very significant peak, being the highest of the period, in the first half of December 2021. went even deeper. After the historical high in Social Volume in the analyzed period, the price of Bitcoin against the Dollar continued to fall. The first peak of “BUY THE DIP”, instead of marking a bottom, marked the top and the beginning of A longer bearish move confirming the trend reversal. After this significant drop, which generated the first uproar of rallying cries in crypto communities around the world, two other points of increased volume were seen from people encouraging to buy. during the price drop, but each was a predecessor to an even bigger drop.Meme do "buy the dip"with several dips pointing the gun at the previous one.With each “BUY THE DIP!”, a new “dip” was observed in the sequence, as illustrated in this meme, where the first character sitting in the front seat marks the beginning of the fall with: “me buying what I believe is the dip”.

The crowd is stopping screaming BUY THE DIP; is the fall over?

What I call the people would be the crowd. The mass of investors that causes the “social volume” to rise. Most of the great successful investors always insist that, to achieve this success, they had to act against the tide. While most people – the crowd; “the crowd”; mass; the people – they were selling, they were buying. And while everyone was buying, they were selling. Successful investors are also called whales (large holders of capital), while the crowd is formed by the so-called sardines. Small traders. Whales’ movement is usually big enough to impact the price, while sardines’ movement has little graphic effect. So while most people called others to buy more, the price dropped, demonstrating that the “tip of successful investor gold” is still worth. And now, according to the chart published by Santiment, it appears that the optimism of “fall buyers” is waning, along with their social activity and the call to buy. If momentum holds, this dip in the blue bars could mark a possible bottom setting and even the end of a short-term cycle where we saw a low, a high, and a low again, correcting the previous move in a larger trading window. medium term. Like the fund that was marked by a similar drop in social volume – as measured by blue bars – in July 2021, in the first chart. What do you think? Did we buy the dip?Read more:Is it worth buying Nano? 100 days of fundamental analysisBlockchain Paradise Has Most Unicorns Per CapitaHacker Reveals How He Could Trade 50 SHIB for 50 BitcoinsSEC Makes Serious Mistake That Helps XRP; second expertBuy Bitcoin on Coinext
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