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Crypto World

5 Buy-the-Dip Signals Crypto Traders Are Watching Right Now

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Negative Commentary as a Dip Buying Signal

The crypto market capitalization has fallen more than 20% year-to-date. In February, investors are divided over whether prices are approaching a local bottom or whether the broader bear market still has room to run.

Amid persistent volatility and growing uncertainty, a key question remains: when is the right time to buy the dip? Analytics platform Santiment has outlined 5 signals to help traders. 

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Are Traders Missing Buy Signals During Market Fear? Santiment Shares 5 Signals

According to Santiment, the first indicator comes from extreme negative social sentiment. By measuring the balance of pessimistic and optimistic language tied directly to specific assets, traders can better filter out noise and identify moments when fear dominates discourse.

Sharp spikes in fear, uncertainty, and doubt (FUD) and pessimistic commentary across social media in past instances have been followed by market rebounds.

“Bottoming out at $60,001 back on Thursday, cryptocurrency’s top market cap asset rebounded a staggering +19% in just under 24 hours following the FUD,” the post read. “When negativity gets high, it’s usually because prices are getting low in a hurry. And once you see the predictions of doom for cryptocurrency, it’s generally the best time to officially buy the dip.”

Negative Commentary as a Dip Buying Signal
Negative Commentary as a Dip Buying Signal. Source: Santiment

Another signal comes from tracking mentions of phrases such as “buy”, “buying”, or “bought” in association with the word “dip.” While these mentions increase during sell-offs, Santiment cautions that this metric alone is unreliable. This is because markets can rebound before retail traders fully capitulate.

A more telling sign, according to the platform, is the shift in language from “dip” to more extreme terms like “crash.” When catastrophic language begins to dominate discussions, it suggests fear-driven capitulation. 

Santiment also highlighted the value of monitoring trending bearish keywords. This includes “selling,” “down,” or narratives suggesting assets are “going to $0,” which often emerge when retail confidence breaks.

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The final signal comes from on-chain data, specifically the 30-day Market Value to Realized Value (MVRV) ratio. This metric measures whether recently active wallets are, on average, in profit or at a loss.

When MVRV enters the “strongly undervalued” zone, it indicates that the most recent buyers are underwater. This condition could precede market rebounds.

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“As the ‘zone’ graphics indicate, you typically want to avoid being heavily invested in an asset when it is above the ‘Strongly Overvalued Zone.’ But on the flip side, there is great upside to buying while it is below the “Strongly Undervalued Zone.” Santiment added.

The analysis stressed that defining what constitutes a “dip” largely depends on market context and the timeframe a trader is operating on. A short-term move of around 1.7% may present an opportunity for hourly swing traders.

Nonetheless, the platform noted that most market participants tend to react on a weekly basis. This better reflects the realistic trading bandwidth of the average trader.

Rather than relying on intuition or “anecdotal things,” the firm argues that objective data offers clearer insight into when fear-driven sell-offs may be nearing exhaustion.

It is worth noting that buying decisions ultimately depend on individual investor preferences and time horizons. While Santiment’s signals can help identify periods of heightened fear and potential opportunity, they do not guarantee that a market rebound will follow. 

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At present, many analysts suggest that the broader bear market may still have room to run. This means that prices could remain under pressure for longer. 

As a result, decisions to buy or hold should be guided by each investor’s risk tolerance, strategy, and opportunity cost considerations.

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Crypto World

Bitcoin Breaks 5-Month Losing Streak With $68K March Close: What’s Next?

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Cryptocurrencies, Bitcoin Price, Markets, BTC Markets, Price Analysis, Market Analysis

Bitcoin (BTC) closed March in green, ending the longest monthly losing streak since 2018. Data suggests that the coming months may prove to be profitable for BTC.

Key takeaways:

  • Bitcoin ended March 2% higher, marking the first green monthly close in six months.

  • A similar streak in 2018/2019 led to an over 316% BTC price rebound over five months.

  • Bitcoin price faces stiff resistance at $70,000-$72,000, where key trend lines converge.

Past multi-month downtrends were followed by 300% price gains

Historical price data from CoinGlass confirms Bitcoin printed its first green monthly candle in six months, closing March 2% higher after five straight months of losses.

“This is a massive dose of hopium,” analyst Ash Crypto said in an X post on Wednesday.

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The analyst was referring to a possible shift in momentum, which might lead to a sustained recovery, as seen in previous cycles.

Related: Crypto Fear & Greed Index stuck on ‘extreme fear,’ but is there a silver lining?

The last time this happened was in 2018/2019 when BTC closed February 2019 in green, after six consecutive red months, as shown in the figure below.

This led to a reversal with over 300% returns the following five months, as Bitcoin recovered from the 2018 bear market.

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“Last time BTC dumped 6 months in a row, it pumped the following 5 months in a row that came after!” trader Satoshi Flipper said in a Wednesday post on X.

Cryptocurrencies, Bitcoin Price, Markets, BTC Markets, Price Analysis, Market Analysis
Bitcoin monthly percentage returns. Source: CoinGlass

If history repeats itself, the reversal may continue in April, suggesting that BTC price may have bottomed at $60,000.

Bitcoin’s bullish monthly close is a ”catalyst for fresh inflows into early April,” Trader Caleb said, adding:

“April starts with momentum.”

Bitcoin has a well-established tendency for significant price swings in April.

Since 2013, April has been a green month for eight of the past 13 years, with average returns of about 12.2%

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However, Bitcoin also tends to move in the opposite direction to March in April, and this is true for nine out of the past 13 years. 

In recent years, Bitcoin dropped in April after closing March in green, three out of four times between 2021 and 2024. 

Therefore, while the end of past multi-month drawdowns suggests a rebound is due, data demonstrates that BTC price could also slide in April.

Watch these Bitcoin price levels next

Data from TradingView shows BTC price up 2.5% on the day to trade at $68,470 as the $69,000-$70,000 resistance remains in place.

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Analysts expect Bitcoin’s range-bound price action to continue for longer, with important price levels to look for in case of a breakout. 

These include the $70,000-$72,000 supply zone, coinciding with the 50-day simple moving average (SMA), the 50-day exponential moving average (EMA) and the 1w–1m cohort cost basis

This is also where investors acquired approximately 650,000 BTC, marking a potential point of sell pressure, according to the cost-basis distribution data from Glassnode.

Breaking above this level could see BTC/USD revisit the $76,000 range high and eventually the $80,000 psychological level.

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BTC/USD daily chart. Source: Cointelegraph/TradingView

Zooming out, trader Sheldon Diedericks said Bitcoin could “push into resistance” at $83,000 on the monthly time frame, a key support level from April 2025. The 200-day EMA is also close to this area.

BTC/USD monthly chart. Source: X/Sheldon Diedericks

On the downside, the 200-week EMA at $68,300 and the 200-week SMA at $59,400 remain key levels to watch. Below that, the next major level is Bitcoin’s realized price around $54,000.

As Cointelegraph reported, Bitcoin’s bear market bottom could be formed once BTC price drops toward or below its realized price.