Bitcoin’s (BTC) Break under Key Support has led to a flurry of the ‘buy dip’ call on social media. However, liquidity trends suggest a potential for a deeper decline.
BTC has fallen over 3% to $ 111,590 this week and pierced the widely traced 50- and 100-day simple movement average (SMA). Both indicators have lost their upward momentum for the first time since April, now flatlining to signal caution for bulls.
Meanwhile, mention of “Buy DIP” on social media has risen to their highest level of almost a month, a narrative sign of bullish mood among retail investors, according to data tracking platform santiment. The platform tracks “Buy DIP” mentions using its social trend indicators that analyze the amount of relevant keywords and phrases across Reddit, Telegram and X (formerly Twitter).
An increase in these mentions is considered a counter -counter from Santiment, which means that the ongoing BTC award could elaborate.
“Prices typically move [in] The opposite direction of the audience’s expectations. So if retailers believe that $ 112,200 is finally time to buy, a little more pain should be felt. When the amount stops feeling optimistic and they start selling their bags with a loss, this is typically time to strike with your dip purchases, “Santiment said in a market analysis.
Largest liquidity cluster for $ 107K
Analysis of order book Liquidity also suggests scope for a continued move lower.
According to Hyblock Capital, the deepest liquidity cluster is characterized by the concentration of purchase/sales orders to $ 107,000. The level can act as a magnet, pull the price down, explained Hyblock on X.
Order book fluid refers to the concentration and availability of purchases and sales orders at different price levels in the order book for a specific asset. It reflects market depth and liquidity by showing the available volume to buy or sell at each price.
Large liquidity levels, such as $ 107,000, can effectively absorb incoming supply and demand, which helps stabilize prices. In addition, dealers often place buying orders near these levels and predicts a price jump that creates a self -reinforcing support effect.
According to Hyblock, smaller but growing liquidity pools are also seen to $ 109,000 and $ 111,000.
