Crypto Market Crashes: Traders React With “Buy The Dip” Calls
12 Dezember 2023 - 3:00AM
NEWSBTC
The crypto market has seen a plunge today, and it would appear that
social media users have reacted by calling to buy this “dip.” Coins
Across The Crypto Sector Are In The Red Today According to data
from the on-chain analytics firm Santiment, social media mentions
of “buy the dip” have gone up following the latest tumble that the
crypto market has experienced. The relevant indicator here is the
“social volume,” which keeps track of the number of unique
posts/threads/messages on the various social media platforms that
mention a specific topic. The metric counts the posts themselves
instead of the mentions because this method provides a more
accurate representation of the behavior among social media users as
a whole. Related Reading: SEC’s “Crypto Asset Securities” Alert
Boosts Spot Bitcoin ETF Prospects – Here’s Why Consider two
scenarios: one where a large number of mentions are happening over
a few posts and another where mentions are also taking place but
are spread out over a large number of posts. In the first,
discussion is limited to a specific group of users, but going by
the mentions, this case would have as much interest in the topic as
the latter when it’s not the case. Now, to find whether “buy the
dip” is gaining traction among crypto investors, what Santiment has
done is filter out the social volume of crypto first and then
search these posts for the mention of terms related to this idea.
Here is a chart that shows the trend in the social volume for this
topic over the last month: The value of the metric appears to have
spiked recently | Source: Santiment on X The graph shows that the
crypto social volume for terms related to “buy the dip” has shot up
after this plummet in the market. In the same chart, the analytics
firm has also attached the “social dominance” data, which keeps
track of what percentage of these discussions are adding up. Social
dominance has also registered a spike recently, and at the peak of
this spike, it seems the metric assumed a value of about 0.7, which
means 0.7% of all discussions related to the crypto sector involved
this topic. “Crypto has experienced its fastest drop in 4 months as
markets have corrected and caused mild trader concerns,” notes
Santiment. “There is a high level of buythedip calls, which
typically means that there is a bit of overeagerness and FOMO on
these low prices.” Related Reading: 63.2% Of PEPE Holders Now In
Profit: How This Compares With DOGE, SHIB While the market is
optimistic about this plunge, too much optimism about things like
“bottoms” has historically actually backfired for the assets’
prices. Thus, these mentions aren’t a sign that Bitcoin and others
have finished with their decline, and more could potentially be on
the way. BTC Price Bitcoin had gone under the $41,000 mark during
its initial plunge, but it wasn’t long before it made some recovery
towards the current price. Looks like the value of the asset has
plunged | Source: BTCUSD on TradingView Featured image from
iStock.com, charts from TradingView.com, Santiment.net
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