The last weekend was not a very favorable one for the bulls in the crypto market.
Bitcoin and Ethereum, two of the biggest cryptocurrencies by market cap, have experienced massive crashes, collectively pulling every other crypto in the market down with them.
Bitcoin, for example, dropped by approximately 3% and now trades at $18,000. Ethereum, on the other hand, has dropped after touching the resistance around the $1700 zone and now trades closer to $1300.
Over the last few weeks, more than $165 million has been removed globally from the market so far. So far, the question on everyone’s lips has now become, “Is this the end?”
If this isn’t the end, many traders would like to know if the real end is indeed near.
During the last few weeks, before the release of the US’s CPI (an event that many believe triggered this market dump), most traders believed that they had ‘pushed’ or even stopped the incoming drop we all knew was coming.
Many believed they had successfully ‘bought the dip’ and would see nothing but green from then on. Currently, there is a real polarization between traders on whether to do it again, as the real ‘dip’ has not been bought successfully yet.
Investors “Buy the Dip”
According to data released by the trader behavioral analysis platform, Santiment, investor interest in buying this new dip has grown.
According to this data, traders are now more interested in buying this dip as bitcoin has crashed to $18,600 and Ethereum to $1300. As noted by Santiment, trends on social media and the internet generally around “buying the dip” have also grown.
However, as opposed to Santiment’s views on the market situation, it was noted around September 14th that investor interest in buying bitcoin was fading. The interest of the crypto community remained low all through last week, even when the prices were rising.
The Federal Open Market Community (FOMC) is set to have its meeting on Wednesday, September 21st, and may affect general prices in the crypto market somewhat. However, it is unclear whether prices will continue declining despite this meeting.
Investors keep a close eye on bitcoin, watching what it does next. No one is sure if the bottom is here or if this dip is only a harbinger of a greater market dip.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)