The Bitcoin Dip Is Here, But Who’s Buying It?

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The Bitcoin Dip Is Here, But Who's Buying It?
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The last few days have been quite a rollercoaster for Bitcoin, with prices fluctuating rapidly. Before the flash crash a few days ago, Bitcoin had hit the highs of $10,500 and was all ready to cruise for the $15,000 target. However, that didn’t happen as the financial world felt the shock of the now-infamous CoronaVirus dilemma.

The collapse of the stock market effectively set the stage for the ripple effects that affected the crypto market. Within hours, Bitcoin fell from the highs of close to $8k to the lows of $3,800 before settling at the $5k range. Since then, the top coin has been swinging between $5,000 and $5,500 for some days.

Market Psychology

However, besides the apparent price volatility, it’s the buying scene that’s really interesting. Historically, shrewd investors have rushed to buy Bitcoin during its dip days. That doesn’t seem to be the case this time, especially with regard to new buyers. One crypto enthusiast named Crypto Kimbo sought to explain this scenario in a twitter post. He called it market psychology.

Bitcoin At $10k

When Bitcoin was trading within the $10k range and showing bullish signs, a lot of people wished that they had bought during its bearish days at $5k and below. Many people swore that if ever Bitcoin went back down to the $5k range, they would buy a lot.

Granted, this sentiment was largely fueled by FOMO since Bitcoin was showing all hallmarks of a seriously bullish asset. That was compounded by the fact that the crypto is nearing its halving time slated for May, an event that would spring it up by huge margins.

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Bitcoin At $5k

In comes, the flash crash, and the people who swore to buy Bitcoin at the dip aren’t interested in buying. This sentiment may be driven by the narrative that the global financial crisis is just beginning and Bitcoin may drop further. 

However, according to market pundits, people who won’t buy Bitcoin during the dip will be the ones to regret their decision when it spikes again to cross the $10k threshold. Either, market psychology is proving to be a rather interesting phenomenon.