Bitcoin traders often buy in the short term when the price of the coin drops slightly, but are afraid to buy in the long term when the price drops sharply, observed on-chain analytics provider Santiment. It added that the buy-the-dip narrative is dormant, indicating that market sentiment is very weak. It also stated: "Historically, this FUD has been well exploited."
Santiment also reported an increase in cryptocurrency holders selling at a loss. It cites the MVRV (market value to realized value) metric, which shows that the vast majority of crypto assets are signaling underbought conditions across the industry. “The market appears dull to traders and we continue to see anxious addresses clearing their wallet address balances and selling at a loss.”
In addition, Glassnode pointed out that, with the previous bull market peak as an anchor point, the Bitcoin price has fallen to the golden Fibonacci ratio of -61.8%. After weeks of consolidation and slow decline, the Bitcoin Fear and Greed Index remains neutral. (CryptoPotato)
