On-Chain Data Hints Spike in #BuyTheDip Interest As The Cryptocurreny Market Tumbles Again

Cryptocurrencies were trading in red early on April 27 as the global crypto market cap fell 5.64 percent to $1.76 trillion over the previous day. Over the last two days, the flagship cryptocurrency, Bitcoin, has hovered below $40,000. Altcoins have been pushed below crucial support levels as a result of the broader market slump. 

Dogecoin (DOGE), which jumped 30% on Tuesday following Elon Musk’s purchase of Twitter, has now dropped 12% and is no longer among the top ten cryptos. 

However, according to popular crypto researcher Lark Davis, BTC may find support at current levels.

On the weekly charts, Bitcoin is already down 10%, while on the monthly charts, it has corrected by more than 20%. Bitcoin’s movements are highly correlated with those of the S&P 500, making it subject to market volatility in the US equity market.

On the other hand, On-chain data source Santiment, observes that social interest in buying the dip has exploded. 

What’s Next for Bitcoin and Altcoins?

Bitcoin price might trade near $40,000 if prices turn around, and a modest push could help BTC reach the $42,000 mark, but that level could operate as a severe resistance for BTC. If the price drops below $37,702, the coin will be dragged to $37,702. At the time of writing BTC is trading at $38,392 and is down by more than five percent.

The situation in the cryptocurrency market as a whole is very similar to that of Bitcoin. Ethereum (ETH), the world’s second-largest cryptocurrency, has also dropped 5.49 percent, trading at $2843.

According to Ali Martinez, a well-known crypto market analyst, In comparison to BTC, ETH has made approximately identical changes in the year 2022. During these periods, though, Ethereum whales have been buying the dips.