After a busy weekend, Bitcoin (BTC) and Ethereum (ETH) prices started the week trading higher, which brought relief to crypto investors.
Major cryptocurrency Bitcoin fell below key support levels before reversing course and rallying on Monday. At the time of publication, BTC and ETH were up 6.7% the previous day.
With the rise of major cryptocurrencies, the global crypto market capitalization jumped more than 5% to surpass the $973 billion mark.
BTC rebounds, is it time to “buy the dip”?
The price of Bitcoin (BTC) jumped more than 6% in a substantial rally, reversing the 2.8% loss suffered over the weekend. Its weekly opening price gains sparked a social outcry on the crypto Twitter as traders watched it reclaim the $20,000 level.
Santiment’s data showed that while the number of mentions of “Buy the dip(buy the fall, in Spanish) was in decline, still dominating the social media narrative.
In particular, the social volumes of BTC/USD declined, while the social domain saw a strong increase.
Generally, calls fromBuy the dip” occur quite often at the start of a downtrend and slowly fade into market lows. This could be explained by the growing disbelief of the crowd, followed by less confidence and less patience.
It is for this reason that a decreasing domination of the so-called “Buy the dip” it’s actually a truer way to find and predict real market lows.
Long-term Bitcoin HODLers keep the price afloat
Despite an unstable macroeconomic outlook, the amount of BTC held by holders term (LTH) continues to grow in both quantity and percentage per supply.
Data from CryptoQuant shows that the current total supply is 19,161,796 and the amount of BTC held by LTH (UTXO > 155 days) is currently approaching a record high. Moreover, the percentage of supply in the hands of these users has already reached a new maximum.
Interestingly, the growth of investment company term has significantly increased compared to the previous two bearish seasons:
- Fund 2015: 9,505,388 BTC — 69.23% of supply at the time.
- Fund 2019: 12,052,330 BTC – 69.14% of supply at the time.
- Cycle 2022: 14,908,142 BTC — 77.81% of current supply.
So, with a long-term HODLer supply showing continued growth, the same points indicate greater market confidence in this metric.
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