Time to Buy More Bitcoin?

Source: Binance Social

Bitcoin’s price has dropped below the $33000 level a few times this week. Bitcoin’s social sentiment seems to be at its lowest since the beginning of the bull run in 2020. Historically, this has been considered an ideal time to buy the dip and accumulate. This decision to buy is based on the social volume indicator alone, typically a price rally follows a dip in social volume, and vice versa.

Bitcoin Weighted Social Sentiment vs Price

This may mark one of the best times to buy based on the Bitcoin Weighted Social Sentiment indicator. This indicator that made its debut all the way back in late 2020, the start of the bull run. Futher to this, metrics such as HODLer composition support the notion of buying more Bitcoin at these price levels. The percentage of large capital investors holding Bitcoin has diminished significantly, although, the percentage of profitable investors has risen. At Bitcoin’s current price level, 68% of HODLers are profitable and the concentration of Bitcoin is increasing in whale addresses.

BTC Dominance — Daily Timeframe

Large money buyers are accumulating coins in the thousands. Retail traders can either buy the dip and fill their basket, or look to short known resistance levels till we break $35,000 which is a point of significance. Capital rotation shouldn’t be remised either, we could see a rally in Bitcoin as other altcoins stagnate. This makes for an easy rotation from BTC to ETH and then into the top DeFi projects to scoop up more gains.

Crypto Fear & Greed Indicator

A popular sentiment analysis tool, known as the Crypto Fear & Greed Index, indicates that there is extreme fear in the crypto markets. Based on the timeline of ROI, this dip makes for a fitting time to enter and accumulate. Buy when others are fearful and sell when others are greedy!

To conclude, buying into altcoins with this much volatility in the market is certainly a high-risk endeavour. There remains the chance that Bitcoin rallies and with it, we will see double digit altcoin gains. Profits made from altcoins should then be rotated back into BTC/ETH and USDT holdings to mitigate overall portfolio risk.

Very few altcoins should be held over the long run as many will be killed off and abandoned this cycle. Shortly, we will publish our top altcoin picks for this year’s bull market to our premium members . We feel comfortable to hold this basket of alts through the bear market without a total loss of enthusiasm as the projects we have investigated have superior fundamentals.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store