This Indicator Suggests Impending Massive Uptrend Following Monday’s Crypto Crash
Monday's crash triggered a wave of dip buying among retail investors, indicative of a FOMO reaction to the sudden market drop.
In the aftermath of Monday’s devastating crypto crash, a key indicator suggests that the market may be on the verge of a massive rebound.
Despite the widespread panic and uncertainty that gripped the market, recent data showing the level of interest in buying crypto assets versus selling crypto assets across social media during the past month points to a potential uptrend that could bring relief to battered investors.
Crypto Dip-Buying Interest Surges on Social
According to blockchain analytics platform, Santiment, dip buying interest has surged to its highest level in a month, with investors eager to capitalize on the discounted prices of top cryptocurrencies.
📊 The following illustrates the level of interest in buying crypto (in blue) vs. selling crypto (in red) across social media over the past month. With Bitcoin’s retrace to about $94.7K earlier, watch to see if retail shows FOMO at these cheaper levels. 👇https://t.co/BwsGe1Hwq5 pic.twitter.com/eFksH8APUu
— Santiment (@santimentfeed) December 10, 2024
Social media buss fueled the recent surge in buying interest, with online discussions and sentiment driving the excitement and urgency to buy.
Bitcoin falling to around $94,000 on Monday created a buying opportunity for some investors, who were eager to buy the dip and capitalize on potential gains. Nonetheless, the increased buying interest, social media buzz, and attempts to ‘add to bags correctly’ showed the crypto crash triggered a FOMO (Fear Of Missing Out) response in retail investors.
Bitcoin Bloodbath Results in About $1.54 Billion Liquidation
On Monday, the market saw extreme turbulence which led to a record $1.54 billion in crypto liquidations within 24 hours. A staggering estimated $800 million in crypto positions vanished in a single hour, marking a new all-time high.
Nonetheless, the latest liquidation affected 522,853 traders. The largest single liquidation, totaling $19.69 million, occurred on Binance’s ETH/USDT market, demonstrating the significant impact on major exchanges.
Several altcoins, including XRP, SOL, ETH, DOGE, SUI, LINK, ADA, and WIF, also felt the impact, with some plummeting over 30%.
In a similar development, Memecoin Dogwifhat (WIF) suffered a significant decline, falling 6.82% in the past week and 79.14% from its all-time high, accompanied by a substantial 30.48% drop in Open Interest to $536.07 million.
