In today’s surge, Bitcoin price saw below $65,000. The broader cryptocurrency market followed suit. Thus, it caused an increase in liquidations on centralized exchanges. In this atmosphere, investors and traders are wondering if there is a dip buying opportunity. Analytics platform Santiment shared its assessments on this issue.
‘Dip buying’ opportunity for cryptocurrencies?
cryptokoin.comAs you follow from , the market turned into a bloodbath today. Leading crypto Bitcoin fell below $65,000 after losing $70,000. In this atmosphere, investors are wondering whether this decline is a buying opportunity. According to Santiment, despite the recent decline in Bitcoin and altcoins, investors remain strong. Therefore, investors are confident in the possibility of a rapid recovery. There are different opinions about whether the decline will continue or whether a rise will begin with the recovery.
However, Santiment says it is too early to buy the dip in Bitcoin and altcoins. This opportunity, he notes, will come when the community shows more negative sentiment. It suggests that historically, the best dip buying opportunities occur when traders talk more bearish words and become more fearful of a decline. In this context, Santiment shared the following assessment:
Bitcoin fell as low as $66.4K and altcoins lost much more of their market value as prices continued their respective pullbacks as April began. However, the crowd remains quite strong and shows confidence in the possibility of a quick recovery. The frequency of words such as buy, buy, bid, and bullish is approximately twice that of words such as sell, sell, sell, or bearish (bear).
Historically, the best dip buying opportunities occur when the crowd consensus shows some fear of further declines. This often results in small wallets leaving their bags for whales and sharks. Watch this chart to see when the red bars (representing negative sentiment) begin to catch up with the blue bars (representing positive sentiment). There will likely be a definitive moment when this ‘buy the dip’ opportunity presents itself.
Crypto trades saw over $400 million liquidated
According to CoinGlass data, over $427 million has been liquidated on various centralized crypto exchanges in the last 24 hours. The vast majority of these liquidations were long positions worth approximately $342 million. Bitcoin positions took the brunt of the damage, with over $130 million liquidated in the last 24 hours, $90 million of which was long positions.
The deletion of long positions occurred as Bitcoin, which was traded above $71,000 yesterday, fell below $66,000. Following the drop, analysts at cryptocurrency trading firm QCP Capital reviewed the latest data. Analysts said the options market, with liquidations led by major individual-dominated exchanges, was signaling movement. QCP analysts included the following assessment in a report published today:
The options market has once again given an early signal of a sharp downside move, particularly the downside skew on risk reversals. The speed of the move was driven by large liquidations on retail-heavy exchanges such as Binance. This caused perp funding rates to fall from a high level of 77% to a flat level.
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