Bitcoin (BTC) Buy The Dip: Here’s Why Sentiment Is Strong Now

Bitcoin news: After a month of bullish environment in January 2023, the crypto market is currently facing hurdles which could drag on for quite some time now. Fear and uncertainty due to the U.S. Securities and Exchange Commission’s (SEC) scrutiny of the crypto staking service led to significant price drop in the last one week. It started with Coinbase CEO Brian Armstrong’s warning about SEC’s plans to ban staking. Eventually, Kraken, which was charged with offering unregistered securities, settled the issue with a $30 million penalty.

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Meanwhile, the drop in BTC price also meant heavy accumulation by whales, in a clear sign of bullish sentiment for short term. In fact, the whale buying of Bitcoin is at the highest after three months. In November 2022, after the FTX collapse, massive selloff by retail traders coincided with heavy accumulation by BTC whales.

‘Buy The Dip’

Even as the price dipped in last few days, traders appear to be focused on adding BTC to their bags. In a significant sign of confidence in Bitcoin’s upside, more traders are long on BTC than short. As many as 62.15% of all accounts on Binance with an open Bitcoin position are going long, as per Ali Charts. Also, the beginning of next week could bring fresh optimism with pick up in BTC price.

As of writing, BTC price stands at $21,752, down 0.72% in last 24 hours, according to CoinGape price tracker.

Also Read: Will Bitcoin Price Fall Below $20K Ahead Of US CPI Data

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @BitcoinReddy and reach out to him at [email protected]