Bitcoin and altcoins suffered a major crash yesterday, losing $1.7 billion in what was one of the biggest liquidations of the year. Bitcoin has disappointed investors with an 8.81% price drop since reaching a record high of $123.8,000 on August 14. Unlike the slow decline of the past few weeks, Monday saw a sizable drop, with BTC falling to a 13-day low of $112.2,000. This sharp decline in BTC has sparked calls to “buy the dip” on social media, but the reality points to the potential for a deeper decline. Cryptocurrency analysis platform Santiment said that calls to “buy the dip” among investors are actually being interpreted as a contrarian indicator. At this point, Santiment stated that the increase in such dip-buy rhetoric is considered a reverse signal and indicates that the ongoing price pullback in BTC may deepen further. “Prices often move in the exact opposite direction of the crowd's expectations. So, if retail investors believe $112,200 is finally the time to buy, that means there's a bit more downside and pain to come. When the crowd loses optimism and starts selling their BTC at a loss, it's usually time to move into dip buying.” Bitcoin's Fall Could Reach This Level! Apart from Santiment, Hyblşock Capital analysts also stated that the downward trend may continue for a while. Bitcoin order book liquidity also suggests the bearish movement could continue, analysts said. Accordingly, analysts said that the largest liquidity pool is at $107,000, which could create a magnetic effect that attracts the price. This increases the possibility of Bitcoin continuing its current downtrend and testing the $107,000 level. *This is not investment advice. Continue Reading: Analysis Firm Warns: "Data Says 'Buy Bitcoin', Liquidity Says 'Sell'! This Price Is Attracting Like a Magnet, The Decline Could Deepen!"
