Bitcoin rupture (BTC) below the key support prompted a burst of calls “Buying the dive” on social networks. However, liquidity trends suggest potential for a deeper drop.
The BTC dropped from 3% to $ 111,590 this week, piercing the simple mobile averages of 50 and 100 days widely traced (SMA). The two indicators have lost their momentum for the first time since April, now flat to report the prudence of the bulls.
Meanwhile, the mentions of “Buy the Dip” on social networks have reached their highest level in almost a month, a revealing sign of bullish feeling among retail investors, according to the Santiment data monitoring platform. The platform follows the mentions of “Buy the DIP” using its indicator of social trends, which analyzes the volume of keywords and relevant sentences on Reddit, Telegram and X (formerly Twitter).
A peak of these mentions is considered a signal contrary by santly, which means that the withdrawal of current prices in BTC could deepen.
“Prices generally evolve [in] The opposite direction of the expectations of the crowd. So, if retail merchants believe that $ 112,200 are finally the time to buy, then a little more pain should be felt. Once the crowd ceases to feel optimistic and they start to sell their bags at a loss, it’s usually the time to hit with your hollow purchases, “said Santly in a market analysis note.
The largest liquidity group at $ 107,000
The analysis of the liquidity of the book of orders also suggests a scope for a lower continuous movement.
According to Hyblock Capital, the deepest liquidity group, marked by the concentration of purchase / sale orders, is visible at $ 107,000. The level can act as a magnet, lowering the price, explained Hyblock on X.
The liquidity of the order book refers to the concentration and availability of purchase and sale orders at different price levels in the order book for a specific asset. It reflects the depth and liquidity of the market by showing the available volume to buy or sell at each price.
Large levels of liquidity, such as $ 107,000, can effectively absorb incoming supply and demand, helping to stabilize prices. In addition, traders often place purchase orders near these levels, anticipating a price rebound, which creates a self-reforming support effect.
According to Hyblock, smaller but growing liquidity pools are also visible at $ 109,000 and $ 111,000.
