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Investors May Look To Capitalize on the Current BTC FUD

Published 26/05/2023, 09:30
© Reuters.  Investors May Look To Capitalize on the Current BTC FUD
BTC/USD
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  • Santiment tweeted this morning that traders are eager to buy brief dips in BTC’s price but are hesitant to buy into longer-term price drops.
  • The latest BTC price drop below $26K was met with weak buyer enthusiasm.
  • At press time, the market leader’s price stood at $26,355.06 following a 0.38% gain.

Santiment tweeted this morning that traders are experiencing a common paradox where they eagerly purchase small dips in the short-term price changes in BTC but are hesitant to buy into larger dips over a longer period. The post added that periods with this level of FUD have historically presented good opportunities for investors to capitalize on.

Frequency of ‘Buy the Dip’ mentions (Source: Santiment)

Data from Santiment shows that the second week of March 2023 saw modest levels of enthusiasm from traders as the price of Bitcoin (BTC) dipped slightly. This is a stark contrast to the most recent dip which saw the market leader’s price drop below $26K, resulting in low levels of enthusiasm from traders and investors.

At press time, BTC’s price traded above the $26K mark at $26,355.06, according to CoinMarketCap. This was after it experienced a 0.38% gain over the previous 24 hours. This positive price movement was unable to flip the leading crypto’s weekly performance back into the green, however, and BTC’s price was down 1.97% over the last 7 days.

4-hour chart for BTC/USD (Source: TradingView)

BTC’s price had been able to break above the 9 EMA line on its 4-hour chart over the last 24 hours – reaching a high of $26,611. Since then, it dropped back below the key EMA line, where it continued to trade at press time.

The RSI indicator on BTC’s 4-hour chart suggested that BTC’s price would continue to fall over the next 24 hours, as the RSI line was sloped negatively toward the oversold territory. Furthermore, the RSI line was looking to cross below the RSI SMA line, which is another bearish technical flag.

If BTC can close a 4-hour candle above the 9 EMA line before the end of today’s trading session, then there is a possibility that BTC’s price will climb to $26,700 in the next few days. However, failing to close a 4-hour candle above the 9 EMA line will most likely result in BTC’s price dropping back down to $26,169 in the coming days.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post Investors May Look To Capitalize on the Current BTC FUD appeared first on Coin Edition.

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