HomeCryptocurrencyDespite the "buy the dip" sentiment Cryptos are still falling

Despite the “buy the dip” sentiment Cryptos are still falling

Since the prices of cryptocurrencies are at their all-time lows, now is the best time to “Buy the Dip” in this market bitcoin takes a share of a gold. On the other hand, traders don’t seem to be buying cryptocurrency when its price drops quickly. They seem to be selling it instead.

Compared to Bitcoin, shorting and selling bitcoins is becoming more popular. In the last 24 hours, short positions on Bitcoin (BTC) averaged about 51% on all exchanges, while short positions on altcoins averaged about 55%.

Even though more people are saying “buy the dip,” there have been more short sales.

Data from the on-chain analytics platform Sentiment about the average financing rate of Bitcoin and altcoins compared to the price of Bitcoin shows that traders continue to short altcoins every time the price of Bitcoin goes down a little. On the other hand, even though Bitcoin prices are moving around, the ratio of long positions to short positions has not changed.

Bitcoin and other cryptocurrencies may be sold short.

On Tuesday, other cryptocurrencies like Ethereum, Binance Coin, and Cardano also fell by 13–18%. At one point, meme coins like Dogecoin, which is backed by Tesla founder Elon Musk, and Shiba Inu, which was made to compete with Dogecoin, lost up to 33 and 70 percent, respectively.

People thought that these two things caused the “flash crash.” An industry expert said that meme coins have unusually high levels of volatility and may be based on the idea.

Analysts say that once turned on, algorithmic trading programs that sell or buy at predetermined price levels could have added to the pressure that was already there. 

From what they said, it seems like cryptocurrency exchanges don’t have circuit breakers as traditional stock markets do. Circuit breakers are devices that go off when an index or stock goes over a certain level. They went on to say that the prices of cryptocurrencies often change a lot.

Shorting Bitcoin and other cryptocurrencies is an option

Prices went down slowly but steadily on Sunday, and traders showed that even though they say they “buy the dip,” they “short” more on the smaller drops. At the moment, this only applies to other cryptocurrencies. This is interesting because it shows that people are flocking to Bitcoin as a safe haven.

Data from Coinglass shows that investors kept selling short alternative cryptocurrencies on Monday. In the last 24 hours, Ethereum (ETH) worth $25 million was sold, and the number of short positions reached 56 percent. In the meantime, the registered short positions for Solana (SOL), XRP, Cardano (ADA), Polkadot (DOT), and BNB were 53%, 59%, 63%, and 67% of their totals, respectively.

It’s interesting to see that short positions in Tether (USDT) have gone up by 85 percent on all exchanges in the last 24 hours. Several short-sellers think that Chinese real estate dealers back most of Tether’s commercial paper holdings. Since the beginning of the month, a lot of USDT has been redeemed, which has caused its market value to drop to about $66 billion.

Due to the bad outlook for the market, hedge funds are also shorting the stablecoin Tether (USDT), which is tied to the US dollar, at a higher rate.

Even though short selling is going on, the number of altcoins that are being sold has been going up. There was a lot of trading in alternative cryptocurrencies in the morning, but now they are trading down. 

The price of Ethereum (ETH) has dropped by more than 4% in the last 24 hours because more people have sold it in the last few hours. Even the ones that were going up have given up their gains and are now going down.

Varinder is an analytical thinker and writer who specializes in technical writing and editing. He loves technology and is good at both of these things. 

Depending on how the market is right now, the author’s personal opinion may be included. Before you put money into cryptocurrencies, you should learn about the market.

Narendra
Narendra
Tells ✍️ impactful, human and diverse stories. Love 💗 and Peace ✌️
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