“Buy The Dip” Sentiment Fails To Save Crypto Market, New Data Reveals Why

With cryptocurrency prices dropping to their lowest point, now is the perfect time to “buy on the dip.” But during these short price drops, it appears that traders are shorting cryptocurrencies than they are buying them.

‘Buy and sell’ sentiment doesn’t stop cryptocurrency selling

More short selling or short selling occurs in altcoins than in bitcoin. In the past day, short positions in Bitcoin (BTC) averaged nearly 51% across exchanges, while short positions in altcoins averaged around 55%.


BTC/USD hovers around $20k. Source: TradingView

Emotion, an on-chain analytics tool, states that data on the average funding rate of bitcoin and altcoins relative to the price of bitcoin shows that traders continue to sell altcoins at every slight dip. By contrast, the Bitcoin buy/sell ratio has not changed despite the price fluctuations.

“With prices gradually declining on Sunday, traders showed that although they may announce it Buythey are default More on these little drops. Interestingly, this only applies to Altcoins Now, indicating that Bitcoin They flock to it as a safe haven.”

according to Coinglass dataTraders continued to sell cryptocurrencies on Monday. In the last 24 hours, the liquidation of Ethereum (ETH) worth $25 million has seen a sell-off of 56 percent. Meanwhile, Polkadot (DOT), Solana (SOL), XRP, Cardano (ADA), and BNB all saw 55 percent, 59 percent, 63 percent, 67 percent and 53 percent sell off.

Related reading | Bitcoin’s permanent open interest indicates a short squeeze that led to the crash

Bitcoin and Altcoin Short Selling. Source: Santiment

It is interesting to note that in the last 24 hours, short positions in Tether (USDT) have increased by 85% across exchanges. Some short sellers believe that Chinese real estate brokers backed the majority of Tether’s assets in commercial paper. Since the previous month, USDT has seen significant redemptions, bringing its market value down by nearly $66 billion.

Amid a gloomy market outlook, hedge funds are also gradually selling off stablecoins pegged to the US dollar and tether (USDT).

Cryptocurrency liquidation escalates amid short selling

Liquidations are also increasing as traders continue to sell altcoins. The altcoins that were actively trading this morning are now negative. Due to the recent increase in liquidation, the price of Ethereum (ETH) is down around 4% in the past 24 hours. Other cryptocurrencies have also given up gains and are currently declining.

Related reading | Doom to Fail: Pegging Constraints Build as Hedge Funds Seek to Profit from Crypto Winter

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