‘Buy Bitcoin (BTC)’ Searches Soar Amid the Recent Crypto Market Crash: Details

05.07.2024 / Payment system news

TL;DR

  • Bitcoin’s price briefly dropped below $54,000, triggering a market-wide correction, but increased interest in buying BTC suggests some view this as a “buy the dip” opportunity.
  • Metrics like the Relative Strength Index (RSI) and the Fear and Greed Index indicate the asset is oversold and in fear territory, which might be interpreted as a potential signal for a rebound.

A Buying Opportunity?

Bitcoin (BTC) saw its price plunge by over 5% on July 5, sinking below the $54,000 level for the first time in five months. Its downtrend coincides with an overall market correction, which affected leading altcoins such as Ethereum (ETH), Ripple (XRP), Solana (SOL), and many more.

While some critics, including the American stockbroker Peter Schiff, predicted that the market would continue to tumble in the near future, others seemingly see the negative conditions as a potential buying opportunity.

As observed on Google Trends, searches with the phase “buy Bitcoin” have spiked to their highest level in a month. The residents of Nigeria, Cameroon, Singapore, the United Arab Emirates, South Africa, and Australia are among the most intrigued ones. Americans were placed in the 12th spot, while those residing in European countries like Sweden, Switzerland, the United Kingdom, and Ireland trailed behind. 

Similar searches like “buy the dip crypto” were quite popular at the start of May when Bitcoin’s price fell under $57,000. Recall that approximately a month after that, the primary cryptocurrency reclaimed the $70K level and even soared above $71,000.

What Signals About a BTC Rally in the Short Term?

Two important metrics suggest that Bitcoin’s crash may soon be replaced by another resurgence. One of them is the Relative Strength Index (RSI), which shows whether the asset is oversold or undersold.

It varies from 0 to 100; a ratio above 70 indicates a possible correction. Currently, the RSI is pointing at 24, crossing the 70 mark just a few times in the past several months. 

For its part, the Bitcoin Fear and Greed Index (gauging the current investment sentiment) recently entered into fear territory after being in greed or extreme greed zone during most days in 2024 (so far). 

While the index’s current condition might not sound like a ringing bell for individuals to enter the crypto market, some industry participants actually believe that BTC being in that state is a good buying opportunity. It is worth mentioning that the billionaire investor – Warren Buffett – once said investors should be greedy when the crowd is fearful and vice versa.

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