The Bitcoin rupture (BTC) below the key support has caused a lot of calls to ‘buy immersion’ in social networks. However, liquidity trends suggest a potential for a deeper decrease.
BTC has fallen more than 3% to $ 111,590 this week, drilling simple mobile averages (SMA) widely in a row of 50 and 100 days. Both indicators have lost their promoting impulse for the first time since April, which is now being convinced to indicate caution for bulls.
Meanwhile, the mentions of “buying the fall” on social networks have risen at their highest level in almost a month, a revealing sign of upward feeling among retail investors, according to the Santiment Data monitoring platform. The platform traces “Buy the DIP” mentions using its indicator of social trends, which analyzes the volume of keywords and relevant phrases in Reddit, Telegram and X (previously Twitter).
An increase in these mentions is considered a contrary signal by Santiment, which means that continuous price setback could be deepened.
“Prices generally move [in] The opposite direction of the expectations of the crowd. So, if retail merchants believe that $ 112,200 is finally the time to buy, then you must feel a little more pain. Once the crowd stops feeling optimistic, and they begin to sell their bags with losses, this is the time to attack with their sauce purchases, “Santiment said in a market analysis note.
The largest liquidity group at $ 107K
The analysis of the liquidity of the order book also suggests reach for a lower continuous movement.
According to Hyblock Capital, the deepest liquidity group, marked by the concentration of purchase/sale orders, is seen at $ 107,000. The level can act as a magnet, reducing the price, Hyblock explained in X.
The liquidity of the order book refers to the concentration and availability of purchase and sale orders at different price levels in the order book for a specific asset. It reflects the depth of the market and liquidity by showing the volume available to buy or sell at each price.
Large levels of liquidity, such as $ 107,000, can effectively absorb supplying and demand supply, which helps stabilize prices. In addition, merchants often make purchase orders near these levels, anticipating a price bounce, which creates a self-reference support effect.
According to Hyblock, smaller but growing liquidity groups are also observed at $ 109,000 and $ 111,000.
