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Cryptographic Carnage: Is ‘Buy the Dip’ Not Another Thing?

The cryptocurrency market has seen a significant drop today, as evidenced by the color red. As tensions between Russia and Ukraine escalated, Bitcoin dropped to a low of $34,000. All other currencies followed suit and saw significant declines. At a time like this, the hashtag ‘buy the dive’ would start to circulate. However, this is unlikely to happen because the fad is dead.

What exactly is ‘buy the dip’? It is just the act of adhering to the fundamentals of trading, ie buying low and selling high. When markets turn red and chaos erupts, the cryptocurrency community often panics. As a result, a number of cryptocurrency influencers have been preaching the whole ‘buy the dip’ narrative to the community. It appears that this was no longer the case, as the last dive didn’t attract as much attention.

Prominent online analytics company Santiment noted that cryptocurrency traders on various social media platforms such as Telegram, Reddit and Twitter did not pay attention to the purchase prospectus.

# crypto dropped on Wednesday, with #altcoins particularly seeing a lot of red. This time, however, traders in #Telegram, #Reddit& #Twitter paid very little attention to #buythedip opportunity. This is indicative of #FUDand a good sign of a turnaround. https://t.co/6NnpS63Y70 pic.twitter.com/3sxScft7ZM

— Santiment (@santimentfeed) February 24, 2022

As seen in the chart above, ‘buy the drop’ mentions were almost non-existent.

This, however, can be a great sign for crypto assets. Elaborating on the same, Santiment he said,

“Markets move in a sign of lower crowd expectations. When traders are asking for #buyingthedip in bulk, the decline often continues. When they ignore the dip and show #FUD trading, that is a sign of capitulation and when markets have historically rallied.”

How is the cryptocurrency market now?

Shortly after Vladimir Putin decided to use military forces in Ukraine, Bitcoin plummeted by around 9%. The alts knew nothing. As Ukraine faces the Russian-imposed war, the cryptocurrency market is waging a war against the bears. While the chart above brings some hope to the market, the recent asset decline indicates that it may take a while.

At press time, Bitcoin was trading at $35,212 with a 9.44% drop in the past two hours. The market cap of the largest cryptocurrency has dropped to $671 billion, as has the global cryptocurrency market cap. The numbers dropped nearly 10% to $1.58 trillion.

About the author

Archu

I am CBC, I am a Crypto expert and a part-time blogger. I usually write about how and where to buy crypto coins in legit ways.

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