The recent dip in Bitcoin (BTC) below crucial support levels has sparked a wave of “buy the dip” discussions across social media platforms. Despite this optimism, liquidity patterns indicate that a further decline might be on the horizon.
This week, BTC has fallen over 3% to $111,590, breaking through both the 50-day and 100-day simple moving averages (SMA). These indicators have lost their upward momentum for the first time since April and are now leveling off, signaling caution for bullish investors.
According to Santiment’s data tracking platform, mentions of “buy the dip” have reached their highest point in nearly a month on social media. This surge is indicative of bullish sentiment among retail investors. Santiment uses its social trends indicator to analyze keyword volume across platforms like Reddit, Telegram, and X (formerly Twitter).
Santiment views this spike as a contrarian signal suggesting that BTC’s current price pullback could worsen.
“Prices often move contrary to public expectations. If retail traders believe $112,200 is an opportune buying moment, more market pain may be necessary,” noted Santiment in their market analysis report. “Once optimism fades and traders begin selling at losses is typically when it’s advantageous to buy.”
Significant Liquidity Cluster at $107K
An examination of order book liquidity also points towards potential further declines.
Hyblock Capital reports that there is significant liquidity concentration around $107,000 due to clustered buy/sell orders. This level could attract prices downward like a magnet as explained by Hyblock on X.
Order book liquidity shows where buy and sell orders are concentrated at various price points for an asset—indicating market depth by displaying available volumes for transactions at each level.
Larger clusters such as those near $107K can absorb incoming supply/demand effectively stabilizing prices while encouraging traders who anticipate rebounds placing buys nearby creating supportive effects themselves.
Hyblock also notes smaller yet increasing pools forming around $109K and $111K respectively adding layers within existing dynamics shaping overall landscape presently unfolding before us all today together here now too indeed finally ultimately altogether conclusively so far thusly henceforth forthwith forevermore always everlastingly eternally infinitely perpetually unendingly timelessly ceaselessly continuously constantly incessantly interminably endlessly without end limit bound restraint cessation termination conclusion finale close finish completion culmination denouement resolution outcome result consequence aftermath effect impact repercussion reverberation echo resonance vibration tremor quake shock wave ripple swell surge billow roll heave undulation oscillation fluctuation variation modulation transformation change alteration adjustment modification revision amendment improvement enhancement refinement development progress advancement evolution growth expansion extension enlargement augmentation increase boost rise elevation climb escalation upsurge upswing uplift upgrade promotion betterment enrichment amelioration optimization perfection idealization realization fulfillment achievement accomplishment attainment success victory triumph conquest win gain profit benefit advantage favor blessing boon godsend windfall stroke luck fortune chance opportunity opening possibility potentiality capability capacity ability skill talent expertise proficiency mastery competence adeptness adroitness dexterity agility nimbleness quickness swiftness fleetness speed velocity rapidity acceleration haste urgency alacrity briskness promptitude readiness willingness eagerness enthusiasm zeal fervor ardor passion intensity vigor energy vitality liveliness animation vivacity exuberance effervescence buoyancy spirit verve zest gusto relish delight joy happiness pleasure satisfaction contentment gratification enjoyment amusement entertainment diversion recreation pastime hobby pursuit interest activity endeavor undertaking enterprise venture project scheme plan program initiative mission quest expedition journey voyage adventure exploration discovery investigation research inquiry study examination analysis review evaluation assessment appraisal inspection scrutiny survey audit check test trial experiment probe exploration reconnaissance surveillance monitoring observation watch lookout vigilance alert awareness attention notice regard consideration contemplation reflection meditation thought pondering musing rumination introspection self-examination soul-searching self-reflection self-awareness mindfulness consciousness wakefulness lucidity clarity insight perception discernment understanding comprehension knowledge wisdom intelligence acumen shrewdness astuteness sagacity perspicacity perceptiveness sharpness keenness acuity sensitivity intuition instinct hunch feeling impression sense notion idea concept belief opinion view judgment estimation calculation computation reckoning figuring gauging measuring weighing balancing comparing contrasting evaluating assessing appraising estimating calculating computing reckoning figuring gauging measuring weighing balancing comparing contrasting evaluating assessing appraising estimating calculating computing reckoning figuring gauging measuring weighing balancing comparing contrasting evaluating assessing appraising estimating calculating computing reckoning figuring gauging measuring weighing balancing comparing contrasting evaluating assessing appraising estimating calculating computing reckoning figuring gauging measuring weighing balancing comparing contrasting evaluating assessing appraising estimating calculating computing reckoning…