New numbers from the crypto market data platform Santiment indicate Bitcoin (BTC) whales are buying the dip at a rapid clip.
The large BTC buys began after BTC hit strong resistance near the $10,000 barrier.
“Are BTC whales back to accumulating? Since Bitcoin’s drop below $9,500 on May 20th, addresses holding 100 or more Bitcoin have added another 12,000 BTC to their bags – more than $108,000,000 at current prices.
Propensity to accumulate into dips and offload their bags slightly before short-term tops occur. Will this history repeat itself?”
The move coincides with a shift in crypto sentiment on Twitter.
According to Santiment, tweets about BTC are now mostly negative for the first time in more than a month.
The shift could indicate that most traders expect the price of the leading cryptocurrency to continue to fall.
Although it may seem counterintuitive, Santiment says buying opportunities often emerge when overall sentiment is down, as traders can become overly negative during BTC retracements.
“For the first time since April 13th, the Sentiment Volume Consumed chart for Twitter followers on their positive/negative ratio of comments related to BTC, is negative, according to Santimentfeed’s tracking.ADVERTISEMENT
This ends a 40+ day streak of the crypto community on this platform holding a majority positive regard toward the #1 market cap coin. Generally, the most prominent buy opportunities occur when crowd sentiment is in the negative, so plan accordingly, particularly if it reaches a level around -0.5.
A number of crypto analysts including Josh Rager say they expect the current pullback to continue, dragging BTC below the $8,000 mark or lower.
Bitcoin is down 0.30% at the time of publishing, at $8,890.