Bitcoiners have been active in recent days following the latest crypto crash. The 3AC and Celsius liquidations have been attributed to the major price drops. In fact, the on-chain metrics of Bitcoin have been showing some interesting developments of late.
“Buy or bye”
Phrases like “buy or bye” and “buy the dip” become a whole theme around crypto crashes. But the ‘dips’ are becoming rangy in recent months with the Russian invasion and China’s lockdowns. Thus, creating a weak global economy. At the start of the year, Bitcoin was trading around $48k, while currently struggling to hold the $21,500 mark.
Nonetheless, traders have been active even in recent market conditions but there’s a catch here. The latest fall in prices has created a polarizing situation among investors who hit a new record this week.
As per Santiment, Bitcoin’s daily token circulation hit a 4.5-year high on 13 June. 497,680 unique tokens were moved to start the week. It, thus, indicated the divisive nature of trading that is currently in focus.
Source: Santiment
Now, there are two schools of thought here with one group advocating to ‘buy the dip’ considering the low prices. The other is calling for a sell-off to cut down on their losses.
Fair to say, traders’ pain has been very high recently. In fact, this past week has seen the most realized losses since 2009 when this data became available. The Santiment’s tweet also quoted that “High capitulation spikes can & will foreshadow bottoms.”
Source: Santiment
Adding to the woes, Bitcoin’s NVT signal just reached a 4-year low of 209.845. This comes as another bit of pain for the so-called ‘maxis’ and ‘moonboys’. All this hints at the fact that true HODLers need to have patience.
Source: Glassnode
Fake pumps
The Federal Reserve approved its largest interest rate increase in more than 25 years on 15 June. The decision was widely anticipated in the crypto community, especially after the latest crash. Similar to the previous FOMC meeting, the decision led to bullish spikes across the crypto market.
Major cryptocurrencies showed more green candlesticks than the red ones as Bitcoin itself pumped up by around 6% (at press time). This led to a lot of chattering on social media with people divided about the conditions of the market sentiment.
A prominent crypto analyst who goes by the name CryotoCapo on Twitter warned investors about the “bullish traps.”
“Funny how the first bull traps were being above 40k, then above 30k, and now above 20k.”
Later, Capo posted another tweet calling this spike nothing but a ‘fake pump.’ He dismissed the ‘bottom’ claims for Bitcoin and reiterated that “I remain out of the market.”
Seeing some bottoms calls here. Honestly, this is one of the clearest fake pumps that we have seen until now.
In my opinion, the 20k level won't hold for long. We haven't seen proper capitulation yet, and there are no bullish signs.
I remain out of the market.
— il Capo Of Crypto (@CryptoCapo_) June 15, 2022
