Various metrics surrounding Bitcoin are at yearly lows, so much so that Santiment, for example, wonders if not the time to "buy the fall".
"Buy the dip" or in Spanish "buy the fall" in cryptocurrency jargon means to buy at a time when prices have fallen, hoping that they will rise again.
In particular, Santiment points out that in recent weeks, activity in Bitcoin's public addresses has decreased along with the circulation of tokens, so much so that on June 5 the number of active addresses reached an annual low, returning to the levels of the year. last (June 27, 2020).
However, at the same time, the supply of BTC on exchanges continues to decline, having peaked just before the recent low a fortnight ago.
Also, the number of addresses where 100 to 10,000 BTC are stored has been increasing steadily for about two and a half weeks. This could indicate that whales are hoarding bitcoins.
In a recent report they write:
“Comments towards Bitcoin are at their most negative sentiment since the end of April, and this is another bullish sign. When the crowd has doubts, it is justified to buy with confidence ”.
Bitcoin, is it time to buy the dip?
On the contrary, according to the eToro analyst Simon Peters, Bitcoin and altcoins appear to be going through an indecision phase, trading in a narrow price range. There would be a lot of uncertainty in the cryptocurrency markets right now, with the demand for transactions falling dramatically, and almost all activity metrics on the chain indicate a sharp drop from the highs of earlier this year.
Finally, the CTO of Bitfinex, Paolo ardoino, He said:
“This current market pause is not unexpected. Everyone needs time to evaluate and absorb what the community has built. We're looking forward to new momentum as we continue to build on the foundations created by some of the brightest minds in fintech. I remain extremely bullish in the long term on bitcoin and the long-term fundamentals and use cases of the technology. "
While all these scenarios start from the same point, a sharp decline in the metrics in the chain, they do not necessarily coincide in the possible future results, although there seems to be a general feeling of cautious optimism. However, it remains to be seen not only if a change will occur, but also when, as no one is suggesting that it will happen any time soon.
The current situation looks like an accumulation phase during which the whales try to increase their BTC holdings taking advantage of prices significantly lower than those of a few weeks ago.