When Bitcoin drops once again, El Salvador’s President Nayib Bukele happily announced that he did not miss the drop. The president reported the other day that El Salvador bought another 410 Bitcoins for $15 million.
However, is now really the best time to buy at the bottom? Can Bitcoin be considered bottoming? According to a survey of Chinese investors by journalist Colin Wu, a significant majority expects Ethereum to drop further compared to Bitcoin.
According to the “Buy the Dip Survey” conducted by the Chinese community on January 22: 61% chose to buy Bitcoin, only 22% chose to buy Ethereum, and 35% said that if Bitcoin fell below $30,000, they would buy the bottom. pic.twitter.com/fxhfpYsrWI
— Wu Blockchain (@WuBlockchain) January 23, 2022
It is quite impressive that 1,364 out of 3,808 participants said that if Bitcoin drops below $30,000, they will buy from the bottom. Besides, 1,001 people also have plans to buy if Bitcoin drops below $25,000. Of course, it is useful to consider the small number of participants, but the results show that many investors expect the price to drop further.
Messari founder, Ryan Selkis, on the other hand, announced that he thinks it is a good time to buy Bitcoin. According to the researcher, if the ratio of market value to realized value is less than 1, it is the right time to buy. Besides, Selkis argued that the said rate would keep the price of Bitcoin around $28,000 under current conditions.
You always buy BTC when MVRV dips below 1. That would be ~$28k here. pic.twitter.com/hqHlMFUajL
— Ryan Selkis 📖 🖊🔑 (@twobitidiot) January 22, 2022
So in a sense, most of the Chinese investors surveyed by Selkis and Wu seem to have similar thoughts.
What about stock market movements?
The stock market flow balance for Bitcoin can offer a better snapshot of what’s going on. Between January 20 and January 21, 2022, there was a surge in stock market entries, suggesting that people were selling their holdings. However, this was followed by exits later. At press time, the currency flow balance shows 3147.60 BTC and again light inflows. It’s worth noting, however, that the recent climbs have not even come close to the levels seen around January 11, 2022. This is a sign that investors are cautious.
It would not be wrong to say that the data in question shows that investors are acting smart. Despite the extreme levels of fear in the market, not many are greedy. It can be said that Chinese investors are waiting for lower prices before entering.
Nischal Shetty, CEO of WazirX, which is owned by Binance, also claimed that Indian investors prefer a “wait and watch” approach for this round.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.